FG Raises N95b At Local Bond Auction

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Money Transfer Operators

By Modupe Gbadeyanka

Nigeria has raised a total of N95 billion in local currency denominated bonds at an auction on Wednesday, October 12, 2016, which was carried out by Debt Management Office (DMO) on behalf of the Federal Government.

Data obtained by Business Post from website of the DMO on Thursday disclosed that the FG obtained N10 billion of 2021 paper at 15.29 percent with a maturity of 4 Years, 9 Months (July 15, 2021). The settlement date for this bond is October 14, 2016.

The debt office had initially offered to sell N35 billion in this segment, but investors were not attracted to the offer.

Instead, investors went for the same amount advertised for the 10-year bond period, which raked N45 billion at 15.47%. The maturity of this bond is January 22, 2026.

Also, the DMO sold N40 billion of 2036 paper (20-year) at 15.48 percent at the Wednesday’s auction, with the maturity precisely on March 18, 2036.

Business Post correspondent gathered that the DMO was not willing to pay more for 12-17 percent yields asked for on all debt offers by most investors at the auction yesterday.

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