FG TO RAISE OVER 90 BILLION NAIRA TO FINANCE 2018 BUDGET

September 27, 2018

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By Joseph Omoniyi
The Debt Management Office, DMO on Wednesday has announced that it had raised additional N96.74bn to finance the 2018 Appropriation Act.
A statement issued by the DMO and made available The PUNCH in Abuja on Wednesday said that the funds were raised through issuance of the FGN Bond in the primary debt market.
According to the DMO, the bonds were issued for three different tenors and were oversubscribed by more than N60bn.
The statement said, “The FGN Bond auction for September 2018, which was conducted by the DMO on Wednesday, September 26, was oversubscribed, as was the case for the August auction.
“Total subscriptions received from bidders for the three bonds offered: five-year, seven-year and 10-year were in excess of N158bn, against the N90bn offered. Demand at the auction was concentrated on the 10-year bond, which was 313 per cent subscribed.
“Allotments were made to successful bidders at 15 per cent for the five-year; 15.15 per cent for the seven-year; and 15.25 per cent for the 10-year bond, which are consistent with the rates in the secondary market for the bonds offered at the auction.”
It added that a total of N96.74bn was allotted to bidders at the auction and the proceeds would provide additional financing for the implementation of the 2018 Appropriation Act.