FG Raises N64bn For 2018 Budget Through Bonds

The Debt Management Office on Thursday said that it had raised N64.06bn towards the implementation of the 2018 budget through the issuance of Federal Government of Nigeria Bonds.

In a statement issued in Abuja, the DMO said the bond auction was oversubscribed as investors staked a total of N142.81bn on the issue.

The DMO said, “We conducted the third in the series of FGN Bond auctions for the year on March 21, 2018 to raise funds for the implementation of the 2018 budget. Bonds were offered in three tenors of five, seven and 10 years to meet the needs of the various investor categories. The auction was oversubscribed, just like the January and February auctions.

“Total subscription at the March auction was N142.81bn, representing 204 per cent of the amount offered. The subscription rates for the five, seven and 10 year bonds were 189 per cent, 84 per cent and 329 per cent, respectively, showing the preference of investors for the 10-year bond.”

Based on the bids received, a total of N64.06bn was allotted and the rates were 13.4 per cent for the five-year, 13.53 per cent for the seven-year, and 13.6 per cent for the 10-year bonds, the DMO added.