Nigeria has raised the interest rate on its reopened 7-year local bond by 2.10 percentage points to 18%, according to results from the Debt Management Office (DMO) August auction.
The DMO offered N200 billion in local bonds at the primary market, a sharp increase from N80 billion in July. The auction featured a new FGN bond maturing in August 2030 alongside the reopening of a June 2032 issue.
Total bids came in at N268.17 billion, with investor appetite tilted towards the reopened 2032 bond, which drew N165.81 billion in subscriptions against a N100 billion offer. The new 2030 paper attracted N102.36 billion in bids, slightly above the N100 billion offered.
The DMO allotted N46.01 billion on the 2030 maturity at a marginal rate of 17.945%, rejecting the balance. For the reopened 2032 bond, N165.81 billion was allotted at a higher spot rate of 18%, marking a 2.10% increase from the previous auction.
