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HomeTop NewsNigeria raises N277 bln in bonds, spread across three tenors

Nigeria raises N277 bln in bonds, spread across three tenors

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Nigeria raised a total of N277 billion from the domestic debt market on Thursday, N127 billion more than it had initially offered at the auction.

According to the Debt Management Office (DMO), the bond was issued across three tenors of 10, 20, and 30-year with demand heavier on the 30-year paper.

The debt office sold N118.83 billion in the 30-year, N115.85 billion of the 20-year paper and N42.37 billion worth of the 10-year bond, detail of the auction released by the DMO on Thursday showed.

The domestic debt auction came few days after the country raised $4 billion in Eurobond from the International Capital Market (ICM), with $12.2 billion worth of order books.

READ ALSO: MTN Nigeria plans N90 bln bond issuances, seeks SEC approval

The DMO received N334.32 billion worth of subscriptions from investors with N156.31 billion worth of demand for the 30-year, N125.58 billion subscription for the 20-year paper and N52.43 billion subscription for the 10-year debt.

Yield on the 30-year paper was marginally higher by 0.20 percent to 13 percent while returns of the two other tenors were stable at 11.60 percent for the 10-year paper and 12.75 percent for the 20-year debt.

Breakdown of the Eurobonds showed that Nigeria raised $1.25 billion in 7-year debt at 6.125 percent, $1.5 billion of 12-year at 7.37 percent and $1.25 of 30-year bonds at 8.25 percent.

“Since the Eurobonds were issued as part of the New External Borrowing in the 2021 Appropriation Act, the raising of USD4 billion through Eurobonds provides a significant amount of funds to finance projects in the Act, thus contributing to the implementation of the 2021 Appropriation Act,” the DMO stated.

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