FG to Borrow N385b from Bond Market in Q1’18
By Modupe Gbadeyanka
In the first quarter of 2018, the Federal Government plans to borrow between N315 billion and N385 billion worth of bonds from the local market.
This information was disclosed on Wednesday by the Debt Management Office (DMO) when it released its FGN bonds issuance calendar for the first quarter of this year.
The debt office is approaching the Naira dominated market to raise the above amounts to support financing of the budget.
Business Post gathered from the calendar that while some of the bonds are re-opening, others are new issues.
On January 24, 2018, the DMO plans to auction between N45 billion and N55 billion worth of the 5-year bond at 14.50 percent, while it would sell between N55 billion and N65 billion worth of the 10-year paper at 16.29 percent. Both bonds are re-opening.
On February 21, the debt office will go to the bond market again to raise between N45 billion and N55 billion worth of re-opening 5-year bonds, and then also offer between N45 billion and N55 billion worth of the 10-year paper (new issue) to investors on the same day.
At the last auctioning of the quarter, the DMO said it plans to raise between N45 billion and N55 billion worth of the 5-year bonds (re-opening) from the market.
In addition, the debt office said it would raise between N35 billion and N45 billion worth of 7-year bond (new issue) on the same day, as well as between N45 billion and N55 billion worth of the 10-year note.
According to the debt office, the auction exercise, as usual, would be carried out using the Dutch auction system.