February 2022 FGN Bond Oversubscribed to the tune of N407.7 billion

The federal government of Nigeria bond issuance for the month of February 2022, by the Debt Management Office (DMO), reported an oversubscription from investors amounting to N407.7 billion over the expected N150 billion offered by the DMO.

This is according to the February 2022 FGN Bond auction result, released by the Debt Management Office.

The bond issuance was auctioned in two tranches with the 12.5% FGN Jan 2026 bond program, which sought to raise N75 billion, congregating a total subscription of N325.4 billion across 230 bids at a marginal rate of 10.95%.

Likewise, the second bond program, the Jan 2042 bond program raised a total subscription of N232.32 billion across 151 bids.

This represented an N157.32 billion oversubscription on the given amount of N75 billion at the marginal rate of 13%.

According to the DMO February auction performance report, successful bids for the 12.50% FGN JAN 2026 & 13.00% FGN JAN 2042 programs were distributed at the Marginal Rates of 10.95%, 10.75%,13%. and 13.00%, respectively.

Nonetheless, the original coupon rates of 12.5% for the 12.5% FGN JAN 2026 and 13% FGN JAN 2042 will be sustained.

Also, the amount assigned for the first tranche was N103.47 billion compared to the total subscription of N325.4 billion, while the second bond had an allotment of N193.92 billion as opposed to the N232.32 billion registered.

Deutschepartners.com

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