By Sam Diala

The Federal Government of Nigeria (FGN) Bonds auctioned Wednesday were oversubscribed by more than 300 per cent, the Debt Management Office (DMO) has announced.

The Bonds auction was part of the N510 billion bond sale planned for  the first quarter of 2020 to finance the 2020 budget.

The DMO in a statement said it offered N155.00 billion of three Instruments of 5-Year, 10-Year and 30-year tenors to investors at the auction that took place Wednesday.

The DMO further stated that N624,498 billion subscription was received through competitive bids, while the sum of N1.83 billion was received through non-competitive bid.

 Total subscription received was N626.328 billion.

Analysis of the transaction showed that investor appetite soared for the 30-year bond tenor which attracted a subscription of N341.77 billion or 621 per cent as against the N55.00 billion offered.

Subscription for the 10-year bond was N201.98 billion or 404 per cent when compared with N50.00 billion on offer.

According to DMO, successful bids were allotted at the rate of 9.8500 per cent for the 5-year while 11.1250 per cent was allotted for the 10-year bonds.

The 30-year bond was allotted at 12.5600 per cent, which indicates a significant decline from the rates of 11.0000 per cent, 12.0000 per cent and 13.0000 per cent for the 5-year, 10-year and 30-year bonds, respectively, at the December 2019 FGN bond auction.

Total amount allotted for competitive bids was N409.992 across the three tenors.

In addition, the sum of N1.83 billion was allotted through a non-competitive bid for the 30-year bond at the same rate with the competitive bids.

The DMO said a total of  N411.822 billion was allotted to investors through both competitive and non-competitive bids.