The Debt Management Office (DMO) has said Nigerian investors have keenly contested for the N20 billion first-of-its-kind 30-year bond offered by the Federal Government at the April Bond Auction on Wednesday.
In a statement it issued in Abuja, it said that a total subscription of N80.41 billion was received from investors representing a 400 per cent subscription rate.
“The bulk of the subscriptions came from asset managers and insurance companies who have been looking for long-term, good quality assets to buy in order to match their liabilities.
“With the success of the 30-year bond offering, the DMO has re-inforced its pioneering role in the Domestic Capital Market by introducing another longer-dated instrument.
“For the government, it represents appropriate funding for infrastructure and an effective tool for spreading out its liabilities, while for the private sector, it provides an avenue for other issuers, such as corporates, to access longer-term funding for their projects,” it said.
The statement said that the DMO offered a total of N100 billion in tenors of five, 10 and 30 years at the auction and received total subscriptions of N149.30 billion, representing a total subscription level of about 150 per cent.
It added that the DMO allotted a total of N97.40 billion to successful bidders at 14.50 per cent for the five-year, 14.55 per cent for the 10-year and 14.80 per cent for the 30-year bond.
Meanwhile, the Federal Government made N754.1 million from sales of savings bond in April.
The result of the sales was also published on the DMO website.
It showed that N126.3 million was allotted to 197 subscribers for a two-year term at 11.27 per cent and N627.7 million to 365 subscribers for a three-year tenor at
12.27 per cent.
The savings bond issuance is expected to help finance the nation’s budget deficit.
Also, Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.