The Debt Management Office (DMO) has announced the results of the August 2023 FGN bond auction.

According to information seen on DMO website, the auction featured the re-opening of four bonds: the 14.55% FGN APR 2029 (10-Year Bond), 14.70% FGN JUN 2033 (10-Year Bond), 15.45% FGN JUN 2038 (15-Year Bond), and 15.70% FGN JUN 2053 (30-Year Bond).

The auction, which was held on 14th of August 2023, saw a total of 281 bids worth N312 billion received for the total amount offered of N360 billion.

The total amount allotted was N277.76 billion, with successful bids allotted at marginal rates of 13.85%, 15.00%, 15.20% and 15.85% respectively across the four bonds.

The settlement date for the auction is 16th August, 2023, and the bonds will mature on April 26, 2029, June 21st, 2033, June 21st, 2038, and June 21st, 2053 respectively.

The data from the August 2023 FGN Bond shows an under subscription of -13% which indicates lower demand for risk-free investments as Investors are weighing in on the impact of rising inflation.

Nigeria’s inflation surged to 24.08% in the month of July 2023, a 129 basis-point increase compared to 22.79% recorded in the previous month.

The significant jump is following the complete removal of petrol subsidies and the unification/devaluation of the official exchange rate.

Notably, on a month-on-month basis, the headline inflation rate stood at 2.89% in July which was 0.76% higher than the rate recorded in June 2023 (2.13%).