Investors Not Deterred by Sanusi’s Sack, 10-Year Bond Issue Oversubscribed

Contrary to insinuations from some quarters that the sack of Sanusi Lamido Sanusi from office will send wrong signals to investors and the international community, stakeholders fell over themselves in a bid to invest their funds in a 10-year bond issued by the Debt Management Office (DMO) today.
A Reuters report said the debt office had initially offered N45 billion apiece in the two maturities, but ended up increasing the amount sold on the 10-year paper and reducing the 3-year paper.
Total demand stood at N185.56 billion, with subscription for the 10-year paper heavier at N114.34 billion.
The DMO has issued N85 billion ($515.9 million) in three and 10-year bonds, today, with the re-opened three-year issue yielding more than the previous tranche sold last month.
The debt office sold N35 billion in the 3-year bond, maturing in August 2016 at 14.10 percent, higher than the 13.49 percent the debt note attracted at the previous auction.
The 10-year debt note, maturing in March 14, 2024, was sold at par, attracting a 14.20 percent yield.

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