The federal government borrowed about N563.4 billion from the domestic capital market at its latest bond auction, continuing the aggressive borrowings that had had characterised the government’s issuances in recent period.
As against its initial offer target of N360 billion, the government allotted bonds worth N563.36 billion at its March 2023 bond auction on Monday.
Transaction report by the Debt Management Office (DMO), the agency that oversees government’s debt issuance and management, indicated that subscription to the N360 billion bond offer was N808.612 billion, 124.6 per cent above initial offer size.
Following the recent trend, the government took advantage of high investors’ appetite for sovereign securities to increase its allotment to N563.359 billion.
At the bond auction, the DMO had offered N90 billion each across four tenors of bonds. The bonds on offer, which were reopening of previous issuances, included the 10-year, 13.9800 per cent February 2028 bond with a previous stop rate of 13.99 per cent; the 15-year, 12.500 per cent April 2032 bond with a previous stop rate of 14.90 per cent; the 20-year, 16.2499 per cent April 2037 bond with a previous stop rate of 15.90 per cent and the 30-year, 14.8000 per cent, April 2049 with a previous stop rate of 16 per cent.