FG to auction N150bn bonds in July
The Debt Management Office (DMO) on Monday, disclosed that the Federal Government will offer N150 billionn bonds for subscription in July.
A circular by the DMO on its website showed that the breakdown of bonds comprised three bonds worth N50 billion each.
They are 10-year reopening bond to be offered at the rate of 13.98 per cent and to mature in February 2028; a 20-year reopening bond to be offered at 12.4 per cent and mature in March 2036; and a 30-year reopening bond to be offered at 12.98 per cent and mature in March 2050.
According to the DMO, the bonds, which will be auctioned on July 19, 2021, have a settlement date of July 23, 2021.
The DMO had earlier disclosed that the Federal Government’s bonds for June worth N150 billion were oversubscribed by N267.48 billion.
The total subscriptions received from investors for the bonds was N417.48 billion, comprising N66.21 billion for 16.2884 per cent FGN March 2027 bonds; N127.45 billion for 12.5 per cent FGN March 2035 bonds; and N223.82 billion for 12.98 per cent FGN March 2050 bonds.
The auction result showed that 61, 111, and 140 successful bids were recorded from 79, 138 and 197 total bids of the three bonds auctioned.
According to the DMO, successful bids for the 16.2884 per cent FGN MAR 2027, 12.5000 per cent FGN MAR 2035 and 12.98 per cent FGN MAR 2050 were allotted at the marginal rates of 12.74 per cent, 13.5 per cent and 13.7 per cent, respectively.
It added that the original coupon rates of 16.2884 per cent for the 16.2884 per cent FGN MAR 2027, 12.5 per cent for the 12.5 per cent FGN MAR 2035 and 12.98 per cent for the 12.98 per cent FGN MAR 2050 would be maintained.
