DMO raises N269.2 billion in Nov 2022 bond issue, posts 153% underwriting rate


the Office of Debt Management (OGD) raised a sum of N269.15 billion from its November 2022 FGN savings bond issue on behalf of the federal government as subscriptions reached 152.9%.

This according to information from the result of the FGN bond auction of November 2022, published by the Debt Management Office and seen by Nairametrics.

The November debt instrument, which was issued in three tranches, saw a total subscription of Naira 344.01 billion against the initial offering of Naira 225 billion, representing a subscription rate of 152.9%.

The breakdown: The 10-year 14.55% FGN April 2029 bond saw a total subscription of 39.45 billion naira against an offer to raise 75 billion naira. However, N25.126 billion was raised at a marginal rate of 14.75%.

  • The second tranche, which is also a 10-year bond, but due in 2032, attracted a sum of N34.818 billion and 44 offers, which is less than the initial offer of N75 billion. However, a sum of N27.118 billion was allocated at a marginal rate of 15.2%.
  • The 20-year bond posted a massive subscription rate of 359.6%, having attracted a total subscription of Naira 269.73bn, a big difference from the initial offering of Naira 75bn. The bond’s marginal rate was set at 16.2%, while it registered 131 awards.

The news continues after this announcement.

Interest rate increase: Due to the increase in interest rates on public debt securities, FGN bonds have been registering impressive subscriptions by the investing public, as variable assets continue to be volatile.

  • The Central Bank of Nigeria has increased the interest rate by a cumulative basis of 450 so far this year as a result of the rising inflation rate in the country, which hit a new 7-year high of 21.09% in October. of 2022.
  • The federal government also continues to visit the local debt market to raise funds to cover its budget deficit, amid a crisis in revenue generation.

In case you missed it: Meanwhile, Nairametrics reported Earlier in the week, Nigeria’s debt stock reached $151.3bn as of June 2022, the bulk of which is owed to the general public in the form of FGN securities.

The news continues after this announcement.

According to the analysis, $50.51 billion is owed to investors, while $48.01 billion is owed to the CBN in the form of Ways and Means.


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