CBN Plans Sale of N1.02tr Treasury Bills via PMA in Q4
By Modupe Gbadeyanka
Fresh treasury bills worth N1.024 trillion would be sold by the Central Bank of Nigeria (CBN) in the fourth quarter of 2018.
This information was revealed by the apex bank in its Nigerian Treasury Bills Issue Programme for fourth quarter 2018.
The central bank said during the period under review, it would roll over same amount of the debt instrument.
A breakdown of the proposed sale via the primary market auction (PMA) showed that 91-day bills worth N62.635 billion, 182-day bills valued at N148.667 billion, and 364-day bills worth N812.401 billion would be auctioned to market players during the period under consideration.
Business Post reports that in the third quarter of 2018, treasury bills worth N1.05 trillion were planned for auctioning to investors via the primary market.
A total of N44.9 billion of the 91-day bills were earmarked for sale during the period, while N225.1 billion of the 182-day instrument N782.5 billion worth of the 364-day were pencilled down for sale by the apex bank.
Treasury bills are short-term debt instruments issued by the Federal Government through the Central Bank to provide short term funding for the government. They are sold at a discount and redeemed at par.
To buy treasury bills from the primary market, investors have to approach their banks requesting for a form.