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FG to Issue More Savings Bond April 3

By Modupe Gbadeyanka

The Debt Management Office (DMO) says it raised N2.07 billion ($6.6 million) from a new two-year savings bond intended for retail investors.

The debt office made this disclosure on Thursday, emphasising that it offered the bond to help broaden the country’s funding base.

According to Reuters, Nigeria forecasts a budget deficit of N2.4 trillion in 2017, half of which it aims to fund through domestic borrowing.

The DMO said the bonds would be available for purchase on a monthly basis and have a maximum subscription of N50 million and carries a coupon of 13.01 percent.

The March auction attracted subscription from over 2,500 applicants during the five-day sale period, the DMO said, adding that the next sale will be on April 3.

The government plans to increase public spending by almost 20 percent this year and has obtained parliament’s approval for a $500 million Eurobond, after raising $1 billion from international debt market last month.

Outstanding total debt rose to N17.4 trillion last year from N12.6 trillion in 2015 and is set to increase further, as Africa’s biggest economy grapples with its first recession in a quarter of century, caused by low oil prices.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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