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HomeBusinessNigeria raises N230.25 bln in sovereign bonds at higher yields

Nigeria raises N230.25 bln in sovereign bonds at higher yields

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By Samuel Bankole

Nigeria sold a total of N230.25 billion in long-tenor sovereign bonds at an auction on Monday but fell short of the N360 billion proposed by the nation’s Debt Management Office at its monthly auction.

Details of this month’s auction are posted on its website. The DMO stated that it offered N90 billion apiece in the four different tenor papers at the auction.

Also, the amount sold at Monday’s auction was lower than the N656.73 billion raised at the previous debt auction in July.

While demand at the July auction stood at N312.56 billion, at the June edition of the DMO auction, investors were willing to buy N1.34 trillion worth of the country’s sovereign bonds.

Yield also fell across the board on the four-tenor paper offered and sold at the July auction.

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The yield on the April 26, 2029, debt closed at 13.85 percent, against 12.50 percent at the previous auction on the same tenor paper.

The 2033 paper attracted 15 percent on Monday against 13.60 percent, and the 2038 paper sold at 15.20 percent compared with 14.10 percent.

The 2053 rose to 15.85 percent compared with 14.30 percent at the previous auction, according to data gathered by Global Financial Digest from the website of the debt office.

Demand for the four tenors totaled N312.56 billion, compared with 1.34 trillion at the previous auction.

Investors purchased N10.43 billion of 2029, N4.07 billion of 2033, N25.52 billion of 2035, and N187.73 billion of 2053 paper.

Nigeria’s debt office sells bonds of various tenors on a monthly basis as part of a measure to raise cash to finance the country’s budget deficit.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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