- DMO hails exercise
BY EDMOND ODOK, ABUJA – Capital market operators demonstrated excitement in Federal Government of Nigeria (FGN) Bond for August 2018 at Wednesday’s auction with the exercise oversubscribed above N100 billion.
The auction had N90 billion Bonds being offered in three tenors of five (5) years; seven (7) years; and Ten (10) years. And going by the total subscriptions received from bidders at the auction conducted by the Debt Management Office (DMO) on Wednesday, August 15, 2018, the results indicated the bond was oversubscribed by N10.09 billion.
A statement by the DMO said; “allotments were made to successful bidders at 14.39% for the 5-year, 14.60% for the 7-year and 14.69% for the 10-year Bond, which are consistent with the rates in the secondary market for the Bonds offered at the Auction.”
The DMO statement further said; “a total of N100.09 billion was allotted to competitive and non-competitive bidders at the auction and the proceeds”, adding that; “With this successful auction, DMO has raised over N510 billion from the domestic market to finance the 2018 budget.”
Addressing the media in Abuja on Tuesday, DMO’s Director General, Ms Patience Oniha, had expressed confidence that effective implementation of Public Debt Management Strategy would ensure Nigeria’s debt remained sustainable.
She also said about N410 billion has been borrowed from the domestic market to assist in financing the 2018 capital budget, noting that the amount represents part of the N793 billion to be borrowed internally this year.
On external borrowings, Oniha, explained that the 2018 Appropriation Act has given authorization for such borrowing to the tune of N850 billion, adding that though DMO is yet to commence foreign borrowings for the year.
The Director General however assured that DMO would be eyeing “cheaper ones first” when the processes for external borrowings are duly finalized.