By Emma Ujah, Abuja Bureau Chief
Investors have continued to demonstrate high appetite for Federal Government of Nigeria (FGN) bond, staking N142.81 billion so far in the March 2018 series.
The Debt Management Office (DMO) conducted the third in the series of FGN Bond Auctions for the year on March 21, 2018 to raise funds for the implementation of the 2018 budget.
Bonds were offered in three tenors of 5, 7 and 10 years, to meet the needs of the various investor categories.
The debt office said that the auction was oversubscribed, just like the January and February auctions.
The total subscription of N142.81 billion represented about 204 percent of the amount offered.
The subscription rates for the 5, 7 and 10 year bonds were 189 percent, 84 percent and 329 percent, respectively, showing the preference of investors for the 10-year bond.
Based on the bids received, a total of N64.06 billion was allotted and the rates were 13.40 percent for the 5-year, 13.53 percent for the 7-year and 13.60 percent for the 10-year bond.
The exercise also indicated a gradual reduction of rates which used to be in the region of 15 per cent.
Recall that DMO Director-General, Ms. Patience Oniha, recently said that driving down rates at the capital market was one of the key objectives of the current debt strategy of the federal government.