FG borrows N1.54trn through bond auctions in H1’20

 bond
Eurobonds

As FGN bonds file 299% over-subscription

By Babajide Komolafe

The Federal Government borrowed N1.54 trillion from home traders by means of bond auctions performed by the Debt Management Office (DMO) within the first half of the yr (H1’2020).

These embody N1.37 trillion borrowed by means of the month-to-month FGN bond auctions from January to June; N2.27 billion borrowed by means of the month-to-month FGN Savings Bonds from January to March;  and N162.55 billion borrowed by means of the Sukuk bond public sale held in June.

Vanguard evaluation of the bond auctions present that the FG borrowed 1.37 trillion by means of the month-to-month FGN bond auctions. The DMO performed six FGN bond auctions of 5-years, 10years, 15 years, and 30-years tenors, providing N615 billion value of bonds.

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The provides have been 299 p.c oversubscribed as traders demanded for N2.5 trillion, representing complete public subscription. Further evaluation confirmed that the debt company allotted N1.11 trillion on aggressive foundation whereas N1.37 trillion was allotted on non-competitive foundation.

The FG additionally borrowed N162.55 billion by means of the Sukuk bond public sale performed by the DMO in June. Though DMO supplied N150 billion value of bonds, traders demanded for N669.12 billion as complete subscription, representing 346 p.c oversubscription.

The FG additionally borrowed N2.27 billion by means of the month-to-month FGN Savings bonds motion performed by the DMO within the first quarter of the yr. While the FG borrowed N828.04 million  by means of the 2-years financial savings bonds, it borrowed N1.45 billion by means of the 3-years financial savings bonds.

FGN Bond auctions

Furthermore, Vanguard evaluation of the FGN bonds auctions confirmed that the FG borrowed N259.73 billion by means of the 5-years bonds. The DMO supplied N190 billion bonds, however the provide was 137 p.c oversubscribed as traders demanded for N449.49 billion bonds.  The DMO allotted N194.73 billion on aggressive foundation whereas N65 billion was allotted on non-competitive foundation.

The FG additionally raised N171.38 billion debt by means of the N95 billion value of 10-year bonds supplied by the DMO. The provide was 213 p.c oversubscribed, as traders demanded N297.68 billion bonds, whereas the DMO allotted N136.39 billion on aggressive foundation and N35 billion on non-competitive foundation.

Furthermore, the FG raised N221.2 billion by means of the 15-year bonds supplied by the DMO. While the debt company supplied N105 billion value of bonds, traders demanded for N287.68 billion value of bonds, representing 174 p.c oversubscribed. The DMO allotted N127.2 billion on aggressive foundation whereas N94 billion was allotted on non-competitive foundation.

Additionally, the FG borrowed N605.76 billion by means of the 30-year FGN bonds supplied by the DMO. While the debt company supplied N225 billion value of bonds, traders demanded N1.25 trillion as complete public subscription, representing, 455 p.c oversubscription. The debt company allotted N603.93 billion on aggressive foundation whereas N1.83 billion was allotted on non-competitive foundation.

Vanguard

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FG borrows N1.54trn through bond auctions in H1’20

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