Federal Government of Nigeria Bonds worth N430bn to be issued Q1 2017.
Federal Government of Nigeria Bonds to be issued Q1 2017
Federal Government of Nigeria bonds worth N403 billion are to be issued in the first quarter of 2017.
The Nigerian government wants to borrow between N340bn and N430bn of local currency bonds during the first quarter, according to the Debt Management Office (DMO).
This was posted on its website on Friday. The DMO said that it will be auctioning N110bn to N140bn worth of bonds maturing in 2021 as well as N85bn to N105bn in debt maturing in 2026.
Also to be sold are Federal Government of Nigeria bonds worth between N45bn to N55bn maturing in 2027 and N100bn to N130bn bond maturing in 2036.
Based on the debt issuance calendar, the Federal Government of Nigeria bond maturing in 2027 will be issued in March. The rest will re-open previously issued debts, starting after January 18.
Nigeria has proposed a budget deficit of N2.36tn for this year, with the hope to fund it by borrowing N1.254tn domestically and N1.067tn from abroad.
The Nigerian government struggled to fund the 2016 budget because an Eurobond sale and World Bank loan were delayed.
Federal Government of Nigeria Sold Treasure Bills
On Wednesday, the Central Bank of Nigeria sold N172.85bn ($550m) at its first Treasury bill sale of the year, with yields remaining the same as the previous auction held on December 21, 2016.
The CBN sold N115.85bn of one-year debt at the same rate of 18.68 per cent with the previous auction, the traders said.
Also sold by the central bank were N35bn of 91-day paper at 14 per cent and N22bn of six-month bills at 17.5 per cent, unchanged from the previous auction.
The auction was subscribed to N194.12bn, well up from N42.68bn at the previous auction.
Treasury bills are issued regularly to help lenders manage their liquidity, curb rising inflation and provide naira to help the government fund its budget.
The central bank had on December 21 raised N39.72bn ($130.57m) at a Treasury bill sale, with yields unchanged on the previous auction.
It sold N13.17bn of three-month paper at 14 per cent, the same yield a on December 14, and sold N26.55bn of the six-month paper also at an unchanged 17.5 per cent.
The auction was sparsely subscribed with total demand of N42.68bn.