Debt Management Office Activities in Nigeria Q2 2018 Update
Stay informed with the latest updates from the Debt Management Office in Nigeria regarding FGN securities issuances, auction results, redemptions, and other activities in the domestic market. Learn about recent developments such as the listing of N100 billion Debut Sovereign Sukuk and the redemption of short-term domestic debt. Discover how these activities are influencing the yields on FGN securities and the overall market liquidity.
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Nigeria_coa Nigeria_coa DEBT MANAGEMENT OFFICE NIGERIA UPDATE ON THE DEBT MANAGEMENT OFFICE UPDATE ON THE DEBT MANAGEMENT OFFICE ACTIVITIES FOR SECOND QUARTER, 2018 ACTIVITIES FOR SECOND QUARTER, 2018 BY BY THE D THE DEBT EBT M MANAGEMENT ANAGEMENT O OFFICE FFICE A AT T T THE HE SECOND M SECOND MEETING EETINGOF OFTHE THE C CAPITAL APITAL M MARKET ARKET C COMMITTEE OMMITTEE, L , LAGOS AGOS T THURSDAY HURSDAY AUGUST 9, 2018 AUGUST 9, 2018
Nigeria_coa Nigeria_coa DEBT MANAGEMENT OFFICE NIGERIA TABLE OF CONTENTS TABLE OF CONTENTS RECENT DEVELOPMENTS i. FGN Securities Issuances, Auction Results and Redemptions ii. Other Activities in the Domestic Market
Nigeria_coa Nigeria_coa RECENT DEVELOPMENTS DEBT MANAGEMENT OFFICE NIGERIA i) FGN Securities Issuances, Auction Results and Redemption Table 1: Issuances and Redemption (N Billion) Quarter Types of Bond Total Issuance Redemption FGN Bonds 280.00 - 1 FGN Savings Bond 0.583 - FGN Bonds 220.00 300.00 2 FGN Savings Bond 0.953 - Total 501.536 300.00 Source: DMO Table 2: Auction Results (N Billion) 12.75% FGN APR 2023 (New Issues/Re- openings) (Re-openings) 13.53% FGN MAR 2025 13.98% FGN FEB 2028 (Re-openings) 14.50% FGN JUL 2021 (Re-openings) 16.2884% FGN MAR 2027 (Re-openings) Total Subscription Rate (%) Quarter Description Amount Offered 1 - 30.00 80.00 110.00 60.00 280.00 Subscriptions - 25.21 177.44 113.49 94.26 410.40 Allotments 146.57 - 8.91 97.54 82.35 64.88 253.68 Average Marginal Rates - 13.5300 13.79 13.4933 13.4910 - Amount Offered 70.00 70.00 80.00 - - 220.00 2 Subscriptions 69.90 74.75 274.37 - - 419.02 Allotments 190.46 45.28 27.90 98.49 - - 171.67 Average Marginal Rates 13.25 13.38 13.42 - - - Source: DMO .
Nigeria_coa Nigeria_coa DEBT MANAGEMENT OFFICE NIGERIA ii) Other Activities in the Domestic Market Listing of N100 billion Debut Sovereign Sukuk The N100 billion 7-year 16.47% Ijarah Sovereign Sukuk was listed on The Nigerian Stock Exchange and the FMDQ OTC Securities Exchange on April 10, 2018. With the Listing, the Sukuk is now being traded, thereby providing liquidity and price discovery for investors and benchmark for potential issuers of Sukuk. Redemption of Short Term Domestic Debt The Debt Management Office (DMO) continued with the implementation of its Debt Management Strategy, which seeks to reduce the relative share of domestic debt in the Debt Stock in order to reduce Debt Service Costs. Consequently, using the proceeds of Eurobonds issued for refinancing purpose, N279.665 billion and N359.232 billion of NTBs, were redeemed in Q1 and Q2 of 2018, respectively. The redemption of the NTBs, which resulted in an injection of liquidity into the market has lead to a reduction in the yields on FGN Securities. The yields on the FGN Securities came down from about 18.6% in December 2017 to 13-14% in June 2018. Government expects that the liquidity released into the system will be accessed by other borrowers, particularly the private sector. 4
Nigeria_coa Nigeria_coa DEBT MANAGEMENT OFFICE NIGERIA Thank you 5
