The Debt Management Office (DMO) says it raised
N56.05 billion in a bond auction on Wednesday,
which is less than half of the amount offered.
The DMO had offered N135 billion worth of bonds
maturing in 2021, 2027 and 2037 at interest rates of
16.8%, 16.8% and 16.9% respectively.
At Wednesday’s auction, the debt office sold N9.18
billion worth maturing in five years, N17.51 billion
maturing in 10 years and N29.36 billion maturing in 20
years.
At the July auction, the debt office sold N3.90 billion
maturing in five years, N47.01 billion maturing in 10
years and N55.05 billion maturing in 20 years making
a total of N105.96 billion out of the N135 billion
offered.
In February, the federal government had offered a
$500 million Eurobond which was over-subscribed by
almost eight times .
Abraham Nwankwo, DMO director general at that time,
had attributed it to bolstering confidence in the quality
of Nigeria’s cash flows and government.
“Nigeria is delighted to have successfully priced its
third Eurobond issue. We have successfully extended
the tenor of our borrowing programme in the
international capital markets to 15 years, at a price
that reflects belief in the quality of Nigeria’s cash flows
and government,” he had said.
The bonds are part of the government’s plan to cover
more than half of a N2.36 trillion naira deficit in the
2017 budget, which is expected to bring the economy
out of a recession.
TheCable
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