Nigeria's bond auction sees ₦312.6bn subscription
Four instruments offered to investors at Monday's FGN bond auction raised a total subscription of 312.6 billion naira, signalling a strong investor appetite for the 30-year Bond on offer. Meanwhile, Angola's state-owned oil company, Sonangol, has offered a 75 billion kwanzas corporate bond with maturity date of 14 September 2028 at a rate of 17.5 per cent per annum. Wonuola Akanbi, Head of Energy and Infrastructure, Global Markets at Stanbic IBTC Bank, joins CNBC Africa for some market updates.
Tue, 15 Aug 2023 14:03:14 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- 312.6 billion naira subscription at Nigeria's bond auction indicates robust market interest.
- 30-year bond sale at higher yield reflects market expectations of further central bank tightening.
- Forecast suggests continued market volatility and potential for increased interest rates in response to inflation and tightening measures.
Nigeria's bond auction saw a total subscription of 312.6 billion naira, with investors showing a strong appetite for the 30-year Bond on offer. The auction featured four instruments that attracted significant interest, indicating a positive market sentiment. Wonuola Akanbi, Head of Energy and Infrastructure, Global Markets at Stanbic IBTC Bank, provided insights into the auction and market dynamics. Akanbi highlighted that the auction exceeded expectations despite concerns about inflation numbers and central bank tightening measures. The 30-year bond, which garnered the most interest, was sold at a higher yield than previous auctions, reflecting market conditions and expectations of further tightening policies. Akanbi shared that the bonds are likely to continue trading wider in the coming months as speculative buyers offload positions. The central bank's efforts to tighten liquidity and increase funding costs have shaped market expectations. Regarding interest rate forecasts, Akanbi suggested that further tightening measures are expected to be implemented to transmit monetary policy rates effectively.
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