Nigeria’s Bond Issuance Oversubscribed By N139 Billion – DMO

The Debt Management Office (DMO) has disclosed that the country’s January bond issuance valued at N214.05 billion ended with an oversubscription of N139 billion.

The debt office disclosed this in the FGN bond result released recently, saying the auction, which ended on January 19, has a settlement date of January 22, 2022.

Prime Business Africa gathered that the agency offered two tranches of bonds worth N75 billion each.

Both issuances have a maturity date of January 22, 2026, and January 21, 2042, respectively. 

According to it, the auction has a term-to maturity period of 4 years and 20 years. The agency noted that the auction concluded with 160 successful bids out of the 254 bids it received.

It further said the amount allotted culminated in N81.72 billion and N88.92 billion for the first and second bond offers. 

The DMO noted that the bids received for the 10-year bond ranged from 10.80 percent to 13.25 percent, while the 20-year bond ranged from 11 percent to 14.50 percent. 

It said: “Successful bids for the 12.50% FGN JAN 2026 & 13.00% FGN JAN 2042 were allotted at the Marginal Rates of 11.50% and 13.00%, respectively.

“However, the original coupon rates of 12.5000% for the 12.5000% FGN JAN 2026 will be maintained, while the coupon rate for the 13.00% FGN JAN 2042 (New Issue), is set at 13.00%.”