Connect with us

Economy

FGN Bond Oversubscribed By N70bn- DMO

Published

on

bond
  • Bond

The Debt Management Office (DMO) says a total of N60 billion bond it offered for the month of December had been oversubscribed by more than N70 billion.

This is contained in a statement obtained from DMO’s website on Wednesday.

“DMO offered a total of N60bn at the FGN Bond Auction of December 2020, which held on December 16.

The offer was oversubscribed as total bids received were N134.056 billion, a subscription level of over 220 per cent,’’ it said.

Read Also: BREAKING: ASUU Calls-Off Nine-Month-Old Strike

DMO stated that the rates of 6.945 per cent and 7.000 per cent for the 15-year and 25-year FGN Bonds, were higher than the rates of 5.000 per cent and 5.785 per cent at the last auction in October.

“The rates reflect the level of interest rates in the market influenced in part by Monetary Policy Actions,’’ it said.

FGN Bonds are debt securities issued by the DMO for and on behalf of the Federal Government and the government has an obligation to pay the bondholder the principal and agreed interest as and when due.

The Federal Government issues Bonds for some of the following reasons: To finance government fiscal deficits in a non-inflationary and sustainable manner, to enhance fiscal discipline of the Government, to refinance maturing debt obligations and to establish benchmark yield curve.




Advertise or Publish a Story on EkoHot Blog:

Kindly contact us at [email protected]. Breaking stories should be sent to the above email and substantiated with pictorial evidence.

Citizen journalists will receive a token as data incentive.

Call or Whatsapp: 0803 561 7233, 0703 414 5611




 

 


DISCLAIMER: Opinion articles are solely the responsibility of the author and does not necessarily reflect the views of the publishers Of  EKO HOT BLOG

For publication of your News Contents, articles, Videos or any other News Worthy Materials, please send to [email protected]

For Advert and other info, you can call 08035617233 or send a WhatsApp Message to 08035617233.

Please drop your comments

Copyright © Ekohotblog

MGID