Nigeria’s Debt Management Office says it could only raise around half of its intended sale of N2.5 trillion in seven and 10-year bonds yesterday as the low-interest rates on offer turned-off investor appetite.
The two bonds were subscribed to the tune of N1.49 trillion with the seven-year tenor raking N873.5 billion, 69.6 percent of the amount offered while the ten-year bond raked N621.38 billion, 49.6 percent of the total offer
In a release by the DMO, it said: “In an unprecedented development, the Debt Management Office (DMO) raised N1.495 trillion Federal Government of Nigeria (FGN) Bonds at its monthly Auction for February 2024.
The DMO offered N1.25 trillion seven -year FGN Bond maturing, in 2031 and another N1,25 trillion 10-year FGN Bond maturing in 2034.dmo
For the Offer, the DMO received total Bids of N1.9 trillion, making it the highest it has received in any one FGN Securities Auction.
The DMO said the relatively large amount on Offer was based on the FGN’s financing need, the opportunity to attract foreign investors, as well as, the premise that some local investors may be able to access pools of funds.