Nigeria allots only N5.75bn in Dec. bonds

Nigerian government has allotted N5.75 billion worth of bonds in its December auction, lower than its initial offer of N70 billion.
In the bond auction circular obtained from its website in Abuja, it said three bonds in tenors of five, seven and 10 years were offered at the auction.
The Debt Management Office (DMO) initially offered N70 billion worth of shares to be bought but only N5.75 billion was allotted, though subscribers made bids worth N94.12 billion.
The Federal Government bonds at the auction were allotted at 12.75 per cent for the five year, 13.53 per cent for the seven year and 13.98 per cent for the 10-year bond.
The results showed that the 10-year re-opening bond had a total subscription of N83.06 billion compared to the N35 billion that was offered, however, N1.29 billion was allotted.
It also said that for the seven year paper, N7.81 billion subscriptions were received for the N15 billion on offer, however, N3.41 billion was allotted.
The DMO said that out of the N20 billion offered for the five year bond, subscriptions to the value of N3.25 billion was received, while only N1.05 billion was allotted.
None of the offers had allotments up to what was originally offered.
Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.