Wednesday 13 January 2016

Nigeria to sell N80billion bonds in first auction of the year

Nigerian Government Bonds
Nigeria will sell N80 billion worth of bonds denominated in the local currency at an auction on January 20, her first debt auction of the year, the Debt Management Office (DMO) said on Monday.

The debt office said it will issue 40 billion naira each of bonds maturing in 2020 and 2026, using the Dutch auction system.

The 2020 debt is a reopening of a previously issued bond. The 2026 debt, according to Reuters, is a fresh issue. Results of the auction are expected the next day. Nigeria has proposed a plan to issue 260 billion to 390 billion naira in 5-, 10- and 20-year naira bonds in the first quarter of the year.

Nigeria said it will borrow about N900 billion locally to finance part of the N2.2 trillion deficit in its 2016 budget.

The Central Bank Nigeria (CBN) last week sold N136.24 billion in treasury bills with maturities from three months to one year at its first auction of the year on Wednesday, at higher yields than previously.

The central bank sold N55.4 billion of three-month paper at 4 percent, up from 3.62 per cent at a sale on December 23. It also sold N25 billion of six-month debt at 6.99 per cent against 6.19 percent, and N55.84 billion of one-year paper at 8.05 per cent compared with 7.45 per cent. Total demand stood at 311.5 billion naira compared with 226.97 billion last time.

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