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Thursday, May 19, 2022

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Nigeria raises N330.3 bln bonds at auction as yields fall across board.

By Oludare Mayowa

Nigeria sold a total of N330.30 billion worth of domestic bonds at an auction on Wednesday, overshooting its initial offering of N150 billion and with yield fallen across board, details of the auction posted on the website of the Debt Management Office (DMO) showed.

The debt office usually raises long tenor debt notes monthly as part of measures to raise naira cash to back government deficit in its budget.

Nigeria had proposed to raise around N2.5 trillion from the domestic bond market this year to part finance the N5.5 trillion budget for the year, while the balance is expected to be raised from the international capital market.

At the auction on Wednesday, investors’ total subscriptions stood at N427.82 billion, while the debt office sold additional N4.50 billion of the 10-year and 15-paper to mandate group on non-competitive bid.

The DMO sold N171.09 billion in the 30-year bond at 13.70 percent, down from 14.20 percent the same tenor paper sold the last month’s auction.

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A total of N103.90 billion of the 15-year tenor bond was sold at 13.50 percent against 14 percent it was sold at last months.

The DMO also N50.81 billion N10 -year paper was sold at 12.74 percent coupon against 13.10 percent at the previous months.

Subscriptions stood at N427.48 percent  N281.97 billion subscriptions last month.

The debt office sold N3.50 billion additional bonds of 10-year paper and N1 billion for the 15-year paper on non-competitive basis to mandate investors.

Traders said investors, especially pension piled demand on the debt instrument in spite of the lower yields offered by the DMO.

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