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NOVEMBER 2019 FGN BOND AUCTION OVERSUBSCRIBED
The FGN Bond Auction by the Debt Management Office (DMO) which took place on Wednesday, November 20, 2019 was highly oversubscribed.
The DMO offered N150 Billion from three (3) Instruments (5-Year, 10-Year and 30-Year Bonds) for N50 Billion each, to investors at the Auction.
Total subscriptions received through Competitive Bids for the instruments at the Auction was N252.35 Billion, indicating a subscription level of 168.23%. The trend of investors’ appetite for the longer tenored instruments continued with subscription of N115.09 billion or 230.18% for the 30-year Bond.
Successful bids were allotted at the rate of 12.0000% for the 5-Year, 12.9300% for the 10-Year and 13.3900% for the 30-Year Bonds. The allotment rates indicate a significant decline from the rates at which the Bonds were issued at the October 2019 FGN Bond Auction.
The total amount allotted for Competitive Bids was N157.93 Billion across the three (3) tenors. In addition, the sum of N95.00 Billion was allotted through Non-Competitive Bids for all the tenors at the same rates as the Competitive Bids.
Overall, the sum of N252.93 Billion was allotted to investors at the Auction through both Competitive and Non-Competitive Bids.
November 20, 2019
Following the Circular to All Banks referenced FMD/DIR/GEN/OGC/14/009 dated October 23, 2019 issued by the Central Bank of Nigeria (CBN), it has become necessary for the Debt Management Office (DMO) to issue this Notice on Eligible Investors for Securities issued by the Federal Government of Nigeria (FGN).
The general public is hereby advised that Open Market Operation Bills (OMO Bills) are securities issued by the CBN for monetary management purposes. Thus, the Circular in question which excluded some investor categories from investing in OMO Bills, is limited to OMO Bills and does not apply to securities issued by the FGN.
The DMO wishes to assure the general public that there is no restriction on persons who can invest in FGN Securities. Thus, all investors, local and foreign, including individuals, co-operative societies, social clubs, town associations, local corporates, fund/asset managers, pension funds, insurance companies, banks and others are eligible to invest in FGN Securities.
The DMO offers a wide range of FGN Securities in various tenors to meet the needs of its growing and diverse investor base. The securities whose tenors currently range from 91 Days to 30 Years are: Nigerian Treasury Bills (NTB), Federal Government of Nigeria Bonds (FGN Bonds), Federal Government of Nigeria Savings Bond (FGNSB), Sukuk and Green Bonds.
October 28, 2019