Investors bet on Nigeria’s 10-year bond
Adesola Afolabi was a businessamlive reporter and Head of Financial desk.
Following the capital raise of N66.9 billion at the July 2018 FGN Bond, the Debt Management Office (DMO) has disclosed that investors showed a strong preference for the 10-year bond.
“Investors showed a strong preference for the 10-year bond with a total subscription of N50.51 billion, compared to the N40 billion that was offered,” the DMO noted, adding that the FGN bonds at the auction were allotted at 13.69 percent for the 5 year, 14.00 percent for the 7 year and 14.2999 percent for the 10 year bond.
The capital raised at Wednesday’s auction would part fund the 2018 budget and was offered in three tenors of 5, 7 and 10 years.
The DMO said this was to give its diverse investor base an opportunity to choose their preferred tenors.