The Debt Management Office (DMO) will raise N73.6 billion through 3, 10 and 20-year bonds on Wednesday, October 15, 2014 according to a statement by the debt office. The three bond offers are re-openings.
DMO said it would raise N18.61 billion through the 13.05 per cent FGN August 2016 3-year bond, N30 billion through the 14.20 per cent FGN March 2024 10-year bond, and N25 billion through the 12.1493 per cent FGN July 2034 20-year bond.
The debt office in the offer document said it would receive application for the auction which would take place on Wednesday October 15, 2014, and be settled on October 17, 2014. According to the offer document, “For re-openings of previously issued bonds, where coupon is already set, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.”
The three-year bond has a maturity period of one year 10 months, the 10- year bond has a maturity period of nine years and five months, while the 20-year bond has a maturity of 19 years nine months. Meanwhile, the DMO released the auction result for the September bond issuance which was the reopening of the 13.05 per cent FGN August 2016, 14.20 per cent March 2024 and 12.1493 per cent FGN July 2034 papers.
According to the result, successful bids for the 14.20 per cent FGN March 2024, 13.05 per cent FGN August 2016 and 12.1493 per cent FGN July 2034 were allotted at the marginal rates of 12.2320 per cent, 11.49 per cent and 12.299 per cent respectively.
It however noted that “the original coupon rate of the 13.05 per cent for the 13.05 per cent FGN August 2016 14.20 per cent, for the 14.20 per cent FGN March 2024 and 12.1493 per cent for the 12.1493 per cent FGN July 2034 will be maintained.”