FG to depend on bonds, TBs for funds

Saturday, 16 July 2011


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The Federal Government is to source the sum of N852.00 billion through FGN bond and Nigerian Treasury Bills (NTBs, according to The third quarter bond auction calendar released by the Debt Management Office (DMO) which shows government borrowing plans for the third quarter.
In June, DMO raised N70.00Billion in a 3-year maturity (18-Mar-2014) and 5-year maturity (23-April-2015). The 3-year maturity (18-Mar-2014) attracted public subscription of N62.52Billion at bids range of 9.00% - 15.00, according to a report by Vetiva Capital Management.
Allotment of N35.00Billion was done among 68 successful at a marginal rate of 11.69%. The re-opening of the 5-year maturity 23-April-2015 attracted public subscription of N90.63Billion. The allotment of N35.00Billion was done among 41 successful bids at a stop rate of 12.75%. The range of bids was 10.00% - 15.50%.
Cumulatively, a total sum of N210.0Billion was mobilised in the second quarter 2011 compared to N240.0Billion during the same period in 2010.
The Two Way Quote FGN bond market, in terms of volume moderated downward in the month; but the market actively traded the 10.50% FGN MAR 2014. Yields on these maturities varied in relation to the liquidity status of the market.

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