Nigerian bond oversubscribed, hits $326.8m
Nigerian government’s bond issued on August 16, 2018 have been oversubscribed, hitting more than $326.8 million.
According to the Debt Management Office although it offered $294 million bonds, investors oversubscribed the offer by more than $32.7 million.
More than $326.8 million raised at the offer would go into financing the 2018 budget, the DMO said.
“The FGN Bond Auction for August 2018, which was conducted by the DMO on Wednesday were offered in three tenors – five years, seven years and 10 years – was oversubscribed.
“The total subscriptions received from bidders at the auction were above $326,8 million.
Allotments were made to successful bidders at 14.39 per cent for the five-year, 14.6 per cent for the seven-year and 14.69 per cent for the 10-year bond, which are consistent with the rates in the secondary market for the bonds offered at the auction.
The allocation was for competitive and non-competitive bidders at the auction and the proceeds will provide additional financing for the implementation of the 2018 Appropriation Act.”
The DMO had on Tuesday announced that it had already raised $1.34 for the financing of the 2018 budget through the domestic debt market.
With the latest announcement, the office has now raised more than $1.6 billion for the 2018 budget through the local debt market.