The Federal Government, through the Debt Management Office, DMO, has recorded a N26.92 billion or 30.5 percent short fall from its targeted proceeds of N115 billion bond auction, which was part of moves to finance the 2018 budget.
DMO disclosed this, yesterday, stating that the federal government has raised N88.08 billion at its bond auction which was held on Wednesday.
The debt office initially offered N115 billion worth of bonds to be bought but only N88.08 billion was allotted, though subscribers made bids worth N143.48 billion.
Recall that the 2018 budget is the largest so far, which was tagged Budget of Consolidation, aimed at consolidating previous years’ achievements and ensuring growth and stability as Nigeria recovers from a period of economic recession. DMO said on its website that the bonds were auctioned in three tenors of five, seven and ten years. This, it said, was to give its diverse investor base an opportunity to choose their preferred tenors.
The auction results posted on the website yesterday indicated that investors showed a strong preference for the 10-year re-opening bond with a total subscription of N102.08 billion compared to the N45 billion that was offered. This shows an over subscription of N57.08 billion or 126. 8 percent from what was offered. However at the end of auction, N55.29 billion was allotted. Read more<<<<<