Debt Management Office plans N150bn bonds auction in March
The Debt Management Office (DMO) has disclosed that the Federal Government will offer N150 billion bonds for subscription in March.
A circular by the DMO on its website seen on Thursday showed that the breakdown of bonds comprised of three bonds worth N50 billion each.
They are 10-year reopening bond to be offered at the rate of 16.888 per cent and to mature in March 2027; a 15- year reopening bond to be offered at 12.5 per cent and mature in March 2035; and the third and longest bond which is a 25-yeaer reopening bond to be offered at 9.8 per cent and mature in July 2045.
According to the DMO, the bonds which would be auctioned on March 24 have a settlement date of March 26.
The DMO had earlier disclosed that the Federal Government’s bonds for February worth N150 billion were oversubscribed by N39.51 billion.
The total subscription received from investors for the bonds was N189.51 billion, comprising of N77.05 billion for 16.2884 per cent FGN March 2027 bonds; N72.33 billion for 12.5 per cent FGN March 2035 bonds; and N40.13 billion for 9.8 per cent FGN July 2045 bonds.
The auction result showed that out of the 78, 53 and 60 total bids for the tenures, 31, 20 and 30 bids were successful.
The DMO stated that a total of N80.55 billion was allotted comprising of N33.62 billion, N28.9 billion and N18.03 billion.
It said, “Successful bids for the 16.2884 per cent FGN March 2027, 12.5 per cent FGN March 2035 and 9.8 per cent FGN July 2045 were allotted at the marginal rates of 10.25 per cent, 11.25 per cent and 11.8 per cent respectively.
“However, the original coupon rates of 16.2884 per cent for the 16.2884 per cent FGN March 2027, 12.5 per cent for the 12.5 per cent FGN March 2035 and 9.8 per cent for the 9.8 per cent FGN July 2045 will be maintained.”
Meanwhile, on the proposed March N150 billion bond, the bank has directed interested investors to contact offices of any of the its Primary Dealer Market Makers (PDMMs).
The PDMMs are Access Bank Plc, First Bank of Nigeria Ltd, Standard Chartered Bank Nigeria Ltd, Citibank Nigeria Ltd, First City Monument Bank Plc, United Bank for Africa Plc, Coronation Merchant Bank Ltd, FSDH Merchant Bank Ltd, Zenith Bank Plc, Ecobank Nigeria Ltd, Guaranty Trust Bank Plc, FBNQuest Merchant Bank Ltd and Stanbic IBTC Bank Plc.
It should also be noted that the DMO reserves the right to alter the allotted amount in response to market conditions.