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HomeBusiness NewsNigeria issues more bonds than planned as inflation falls

Nigeria issues more bonds than planned as inflation falls

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 Nigeria’s debt office said on Thursday it had issued more bonds than originally planned at an auction after slowing inflation rate helped it offer debt at lower yields.

The Debt Management office (DMO) said it raised 160 billion naira ($509 mln) at an auction on Wednesday, 30 billion naira more than it had offered to sell.Image result for abraham nwankwo
Nigeria’s inflation slowed to 17.78 percent in February, its lowest level in 15 months.
The government has been selling bonds below inflation in recent months to curb borrowing costs as it intends to fund half of this year’s forecast budget deficit of 2.36 trillion naira ($7.50 bln) through the domestic debt market.
An 80 billion naira bond due 2036 was sold at 16.28 percent against 16.77 percent at its last sale, while a 2021 debt was issued at 16.24 percent against 16.55 percent previously to fetch 30 billion naira.
Another 50 billion naira due in 2027 was issued at par at 16.28 percent.
Total demand at the auction stood at 216.38 billion naira compared with 337.03 billion naira at last month’s sale.
Nigeria issues domestic bonds every month to raise money to fund its deficit, which also helps the banking system manage its liquidity.
© Reuters News

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