Nigeria raises 90 billion naira in 2020, 2026 bonds at lower yield – DMO

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Nigeria raised 90 billion naira in local currency denominated bonds maturing in 2020 and 2026 at an auction on Wednesday, paying lower yields than at the auction held in January, the Debt Management Office (DMO) said on Thursday.

The debt office said it sold 40 billion naira of 2020 paper at 12.19 percent against 12.24 percent at last month’s auction, while it raised 50 billion naira in the 2026 debt with a return of 12.39 percent, compared with 12.50 percent at its first issue last month.

The 2020 bond also reopened, was first issued in February last year.

Subscriptions from investors stood at 234.25 billion naira compared with 149.43 billion naira at the last auction.

The debt office proposed to issue 260 billion to 390 billion naira in 5-, 10- and 20-year naira bonds in the first quarter of the year.

Africa’s biggest economy issues local bonds as part of measures to finance the government budget deficit and also help to manage liquidity in the banking system.

Nigeria said it would borrow about 900 billion naira locally to finance part of the 2.2 trillion naira deficit in its 2016 budget.

Source: Reuters, GTI Research

 

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