Investors sustain appetite for FGN bonds

In spite of the prevailing tight liquidity experienced in the financial market, investors have continued to show strong appetite for the FGN Bonds offered by the Debt Management Office (DMO)

At the FGN bond auction held on Wednesday, the DMO issued N59.53 billion bonds for the three tenors offered to various investors, with N40 billion offered for the five-year, N50 billion for the 10-year and N55 billion for the 30-year bonds.

At the end total, subscriptions received from both Competitive and Non-Competitive bids amounted to N139.58 billion.

Demand for the 30-year Bond remained strong as has been the trend since the instrument was introduced to the market in April 2019.

The total subscription for the Bond at the Auction was N64.71 billion.

Allotments were made to successful bidders at the rate of 14.290 percent for the five-year, 14.390 percent for the ten-year and 14.590 percent for the 30-year bonds.

The DMO noted that the strong demand from investors for the FGN bonds offered at the auction was in spite of the prevailing tight liquidity experienced in the financial markets.