Nigeria’s Debt Management Office (DMO) has successfully auctioned ₦90.00 billion worth of bonds with varying maturities on April 17, 2023. The bonds, which will mature on February 23, 2028, April 27, 2032, January 21, 2042, and March 27, 2050, were offered in 10-year, 20-year, and 30-year tenors.
According to the auction result released by the DMO, a total of 18, 12, 67, and 131 bids were received for the 10-year, 10-year, 20-year, and 30-year bonds respectively. Of these, 9, 8, 52, and 104 bids were successful for the respective bonds.
The total subscription for the bonds was ₦443.03 billion, while the total amount allotted was ₦368.665 billion. The successful bids were allotted at marginal rates ranging from 14.0000% to 15.8000%, depending on the bond tenor. However, the original coupon rates for each bond will be maintained.
Non-competitive allotments worth ₦29.00 billion, ₦94.50 billion, and ₦60.30 billion were allotted for the 10-year, 10-year, and 20-year bonds respectively.
The DMO expressed satisfaction with the outcome of the auction, stating that it is in line with its objective of borrowing to finance the government’s budget, support the development of the local bond market, and diversify the country’s funding sources.
Investors interested in the bonds can purchase them from authorized dealers at the secondary market.