Yet another FG bond oversubscribed

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The Debt Management Office (DMO) says the Sovereign Green Bond recorded oversubscription by 0.94 percent.

This makes it the fifth federal government bond to record oversubscription in eights months.

In June 2017, the federal government issued a $500m Eurobond which was oversubscribed by almost four times.

In the same month, the diaspora bond, which was oversubscribed by 130 percent, was listed on the London Stock Exchange.

In September of the same year, an N100m Sukuk was issued to fund construction of 25 roads across the country and this was oversubscribed by six percent.

In November, the federal government issued a $3 billion Eurobond to fund capital projects in the 2017 budget and refinance domestic debts.

In a statement released on Thursday, the DMO said, “the total subscription received was N10.791 billion compared to the N10.69 billion offered”.

The DMO said that investors such as banks, pension funds, asset managers and retail investors subscribed to the Green Bond.

The DMO offered N10.69 billion bond for a tenor of 5 years at 13.48 percent interest.

In the statement, DMO said it is pleased with the strong interest shown by investors.

“It also shows support for the Paris Agreement on the Climate, which Nigeria has endorsed.”

Moody’s foreign rating agency had rated the Green Bond excellent in 2017.

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