CEM REPORT, FINANCE | The Debt Management Office (DMO) raised a sum of N269.15 billion from its November 2022 FGN Savings Bond issuance.
The Savings Bond which was issued across three tranches, saw a total subscription of N344.01 billion as against the initial offer of N225 billion, representing a subscription rate of 152.9%.
This is according to information in the November 2022 FGN bond auction result, released by the Debt Management Office.
The report revealed that the 10-year 14.55% FGN Apr 2029 bond, recorded a total subscription of N39.45 billion as against an offer to raise N75 billion. Although, N25.126 billion was raised at a marginal rate of 14.75%.
The second tranche, also a 10-year bond, but with a maturity year of 2032, attracted a sum of N34.818 billion and 44 bids, which is lower than the initial offer of N75 billion. A sum of N27.118 billion was however allotted at a marginal rate of 15.2%.
The 20-year tenor bond recorded a massive subscription rate of 359.6%, having attracted a total subscription of N269.73 billion and 131 successful bids, a huge difference from the initial offer of N75 billion. The marginal rate for the bond was stated at 16.2%.
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With a steady increase in interest rates in government debt securities, the investing public has shown more interest in FGN bonds even as variable assets continue to remain volatile.
This is as the federal government continues to visit the local debt market to raise funding to fund its budget deficit, amidst a crunch in revenue generation.
Nigeria’s debt stock hit $151.3 billion as of June 2022, most of which is owed to the general public in form of FGN securities.
According to analysis, $50.51 billion is owed to investors, while $48.01 billion is owed to the CBN in form of Ways and Means.