Nigeria raises N126 bln via bonds as yields fall across board
Nigeria’s Debt Management Office (DMO) raised a total of N126.15 billion via sales of domestic bonds at an auction on Wednesday, the amount sold was, however, short of the initial proposed N150 billion by the debt office.
Details of the auction released by the debt office showed that yields on the debt fell on three of the tenor paper while the debt office raised yields on the 10-year tenor paper.
Investors demanded a total of N242.23 billion for the bond on offer while the subscription was heavier on the 30-year paper with a total of N114.29 billion demanded by investors.
A total of N53.69 billion was sold on the 30-year debt with yield down to 9.90 percent against 9.95 percent at the last auction while the debt office sold N17.59 billion in the 25-year debt at 9.75 percent compared with 9.80 percent returns at the previous auction.
The debt office sold N21.45 billion of the 15-year paper at 9.35 percent against 9.50 percent yield at the previous auction and N33.42 billion in the 10-year debt at 6.70 percent compared with 6 percent at the last month’s auction.
A total of N9.50 billion of the amount sold by the DMO was allotted on non-competitive bid.
Nigeria plans to raise up to N1.5 trillion from the domestic debt market this year to finance the gap in its revised 2020 budget.