The Debt Management Office (DMO), says as part of activities for raising capital for the 2018 budget, the Federal Government raised N96.7 billion at its bond auction on Wednesday.
A statement obtained from the DMO website in Abuja, said at the auction the DMO offered bonds in three tenors of five, seven and 10 years.
It said investors had a total bid of N158 billion compared to the N90 billion that was offered.
“Allotments were made to successful bidders at 15 per cent for the five year paper, 15.15 per cent for the seven year bond and 15.24 per cent for the 10-year bond.
“These are consistent with the rates in the secondary market for the bonds offered at the auction,” it said.
A breakdown of the auction results showed that for the five year bond, N25billion was offered, N20.68 billion was subscribed, while N17.48 billion was allotted.
It also said that for the seven year paper, N25 billion was offered, N12.48 billion was subscribed, but N7.38 billion was allotted.
For the 10-year paper, which investors showed strong preference for, N40 billion was offered, N125.35 billion was subscribed, but only N71.88 billion was allotted.
Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.