FG to auction N150bn February bonds

FG to auction N150bn February bonds

The Debt Management Office (DMO) has said the Federal Government will auction N150 billion worth of bonds by subscription on February 17.

A circular by the DMO on Thursday showed that a N50 billion 10-year reopening bond maturing in March 2027 would be offered at 16.288 per cent; another N50 billion 15-year reopening bond maturing in March 2035 would be auctioned at 12.5 per cent.

It will also offer the longest of them which is a N50 billion 25-year reopening bond maturing in July 2045 to be auctioned at 9.8 per cent.

The settlement date for the bonds is February 19, according to the DMO.

It would be recalled that the Federal Government’s bonds for January worth N150 billion were oversubscribed by N88.28 billion.

The total subscription received from investors for the bonds was N238.28 billion, comprising of N91.84 billion for 16.2884 per cent FGN March 2027 bonds; N106.37 billion for 12.5 per cent FGN March 2035 bonds; and N40.07 billion for 9.8 per cent FGN July 2045 bonds.

The auction result added that out of the 125,99 and 77 total bids for the tenures, 73, 44 and 28 bids were successful.

It stated that a total of N122.36 billion was allotted comprising of N49.4 billion, N57.93 billion and N15.03 billion respectively for the tenors.

The DMO stated, “Successful bids for the 16.2884 per cent FGN MAR 2027, 12.5 per cent FGN MAR 2035 and 9.8 per cent FGN JUL 2045 were allotted at the marginal rates of 7.98 per cent, 8.74 per cent and 8.95 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.”