The Debt Management Office raised N79.62Bn ($260.20M) at an auction of Government bonds on Wednesday, 21st of February 2018; less than it originally planned, after it got fewer subscriptions for the most liquid five-year debt, traders said on Thursday, 22nd of February, 2018.
The DMO initially intended to raise N100Bn. It got subscriptions of N117.58Bn, more than half skewed towards the 10-year bond. The DMO sold N27.18bn in five-year bonds at 13.70 per cent and N52.44Bn in 10-year debt at 13.98 per cent.
The five-year bond is due in 2021, the 10-year, a new offering, in 2028. Investors bid as high as 16 per cent for the bonds at the auction. The Government has been working to lower its borrowing costs, particularly as inflation fell for the 12th time in a row in January.
It sold Eurobonds last Thursday, 15th of February, 2018 to help repay some treasury bills rather than rolling them over as it has done in the past. Investors are waiting for the debt office to announce which bills it intends to pay off and a reduction in auction volumes for second quarter, which could spur buying.