Olamilekan Okeowo
The Debt Management Office, DMO, yesterday, raised N106 billion through the Federal Government of Nigeria, FGN, Bonds.
The funds raised will support the implementation of the Federal Government’s N7.44 trillion 2017 budget, which has an allocation of N2.36 trillion to capital expenditure.
The funds were raised after the DMO, in line with its mandate, conducted an Auction of FGN Bonds to provide funds for the implementation of the budget. The bonds, the Debt Management Office said, were offered in three tenors of 5, 10 and 20 years to meet the needs of various investors.
The total subscription was N129 billion, representing 96 per cent of the amount offered. The 10 and 20-year Bonds were oversubscribed, showing investors preference for long-dated Bonds. Based on the bids received at the Auction, the DMO allotted a total of N106 billion and the rates were 16.24 per cent for the 5-year, 16.25 per cent for the 10-year and 16.2514 per cent for the 20-year Bond.
The 2017 budget is an integral part of the Economic Recovery and Growth Plan, ERGP. While there’s noticeable alignment between the Federal Government budget and the ERGP, full implementation of capital projects in the budget is critical to achieving the desired development and recovery.
