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Nigeria raises N341.97 bln on domestic debt market at lower yields

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By Oludare Mayowa

 

Nigeria on Monday raised a total of N341.97 billion worth of sovereign bonds, consisting of N138.07 billion from an auction and N103.90 billion on non-competitive bids to mandate holders.

According to the data released by the Debt Management Office (DMO), the debt issued was 61.31 percent more than the N150 billion initially offered at the auction.

Yields on the debt also declined across board with the 30-year paper sold 45 basis point cheaper than the returns attracted by similar paper at the last month’s auction.

Also, yield on the 10-year paper declined by 39 basis points against the returns on similar tenor at the last auction, while the debt office didnot sell 20-year bond at the previous auction.

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The debt office sold a total of N55.20 billion  of the 30-year paper at 13.25 percent, down from 13.70 percent it was sold at the previous month auction.

The DMO also sold N51.16 billion of the 20-year bond at 13.15 percent and auctioned N31.71 billion of the 10-year paper at 12.35 percent rate against 12.74 percent it fetched at last month’s auction.

The debt office also allocated a total of N103.90 billion worth of the 10-year paper on non-competitive bid to mandate holders.

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.

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