Economy

FGN Bond Oversubscribed By N70bn- DMO

  • 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.

Grace Ihesiulo

Grace is a prolific writer, a Broadcast journalist and a voice over specialist.

Share
Published by
Grace Ihesiulo

Recent Posts

BREAKING: Price Of Petrol Reduces At NNPCL Stations – See New Price

NNPCL reduces petrol price to ₦965 in Abuja. Independent marketers maintain higher prices, ranging from…

2 hours ago

Nigerian Govt Declares Public Holidays For Christmas, New Year

The Federal Government has declared Wednesday, Thursday and Jan.1, 2025 as public holidays. This was…

4 hours ago

‘It’ll Boost Development’ -Matawalle Reacts To Lifting ban On Mining Activities In Zamfara

The Minister of State for Defence, Bello Matawalle, says the lifting of ban on mining…

5 hours ago