Investors commit N3.36tn to FG bonds in 12 months

Investors committed about N3.36tn to Federal Government bonds between January and December 2021, according to an analysis of the FGN Bond Auction results available on the website of the Debt Management Office.

Bond oversubscriptions hit N1.61tn within the period under review, indicating the investors’ strong appetite for FGN bonds.

An analysis of the breakdown for each month showed that Federal Government bonds for January worth N150bn were oversubscribed by N88.28bn. The total subscription received from investors for the bonds was N238.28bn, comprising N91.84bn for the 16.2884 per cent FGN March 2027 bonds; N106.37bn for the 12.5 per cent FGN March 2035 bonds; and N40.07bn for the 9.8 per cent FGN July 2045 bonds. The auction result added that out of the 125, 99 and 77 total bids for the tenures, 73, 44 and 28 bids were successful.

The Federal Government bonds for February worth N150bn were also oversubscribed by N39.51bn. The total subscription received from investors for the bonds was N189.51bn, comprising N77.05bn for the  16.2884 per cent FGN March 2027 bonds; N72.33bn for the 12.5 per cent FGN March 2035 bonds; and N40.13bn for the 9.8 per cent GFN July 2045 bonds. The auction result added that out of the 78, 53 and 60 total bids for the tenures, 31, 20 and 30 bids were successful.

The Federal Government bonds for March worth N150bn were equally oversubscribed by N183.48bn. The total subscription received from investors for the bonds was N333.48bn comprising N65.25bn for the 16.2884 per cent FGN March 2027 bonds; N110.19bn for the 12.5 per cent FGN March 2035 bonds; and N158.04bn for the 9.8 per cent FGN July 2045 bonds. The auction result added that out of 82, 125 and 215 total bids submitted for the tenures, 48, 88 and 176 were successful.

The Federal Government bonds for April worth N150 were oversubscribed by N115.66bn. The total subscription received from the investors for the bonds was N265.66bn, with the shortest tenor undersubscribed.

The Federal Governments bonds for May worth N150 were oversubscribed by N131.97bn. The total subscription received from the investors for the bonds was N281.97bn.

The Federal Government’s bonds for June worth N150 were oversubscribed by N267.48bn. The total subscription received from the investors for the bonds was N417.48bn.

The Federal Government bonds worth N150bn for July were oversubscribed by N136.11bn.

The Federal Government bonds worth N150bn for August were oversubscribed by N210.02bn.

The Federal Government bonds worth N150bn for September were oversubscribed by N184.32bn.

The Federal Government bonds worth N150bn for October were oversubscribed by N100.71bn.

The Federal Government bonds worth N150bn for November were oversubscribed by N117.15bn.

Only two bonds were offered to investors in December, unlike previous months. The Federal Government bonds worth N100bn for December were oversubscribed by N32.61bn.