DMO offers N75b bonds

Source: The Nation Newspaper Published:Monday, January 25th, 2010

The Debt Management Office (DMO) last week resumed its monthly bond auctions, offering a total of N75 billion FGN bonds, made up of N20billion for the three-year tenor, N25billion for the 10-year tenor and N30billion for the 20-year tenor.

A statement issued over the weekend by the DMO stated that the variety of the tenors on offer, namely 3, 10 and 20 years, was to give investors the opportunity to choose the bond(s) most suitable to their needs and investment objectives.

According to the statement, “the auction was very successful as evidenced by the subscription levels of each tenor. Sixty-five bids for N40.43bilion were received for the 3-year bond while for the 10-year bond the corresponding figures were 74 and N42.10billion respectively”.

The statement added that “for the 20-year bond, a total of 76 bids for N65.50billion were received”.
Moreover, the statement disclosed that all the bonds on offer were allotted at the marginal rates of 6.8299 per cent, 8.14 per cent and 8.50 per cent for the 3-year, 10-year and 20-year tenor respectively. “A non-competitive bid of N18.5billion for the 3-year tenor was also allotted at the marginal rate of 6.8299%”, the statement also stated.

The DMO also noted that the range of bid rates for each tenor was fairly consistent with those of the last auction held in November, 2009 which indicated that the liquidity and interest levels in the market are stable and that investors’ perception of the bonds as safe and liquid has not changed.

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