Nigeria Secures ₦1.6 Trillion in Bonds with Lower Yields

On September 14, Nigeria conducted an auction where it allotted approximately ₦1.60 trillion in government bonds, securing long-term financing. The competitive allotments totaled ₦748.64 billion, while ₦850 billion was allocated through non-competitive subscriptions.

Investors submitted around ₦1.495 trillion in competitive bids against a ₦1 trillion offer. The new ten-year bond cleared at a yield of 16.79%, and the reopened June 2038 bond cleared at 16.85%.

Notably, the yield on the 2038 bond decreased from 17.79% at the previous auction in August. Subscriptions for the 2038 bond rose from ₦821.32 billion to ₦947.83 billion, a 15.4% increase, despite the amount offered dropping from ₦750 billion to ₦600 billion.

This indicates a strong demand for the bond, with successful bidders accepting a lower return at the auction price.