- Advertisement -spot_img
34.3 C
Lagos
HomeTop NewsNigeria raises N415.4 bln in 10-year, 20-year bonds at Feb auction

Nigeria raises N415.4 bln in 10-year, 20-year bonds at Feb auction

- Advertisement -spot_img

By Oludare Mayowa 

Nigeria on Wednesday raised a total of N415.42 billion worth in sovereign bonds at the second domestic debt auction of the year, the Debt Management Office (DMO) said, with mixed yields on the two tenor paper on offer.

According to the details of the auction result released by the Debt Management Office (DMO), a total of N297.39 billion was raised through the auction while N118.03 billion was allotted on non-competitive bid to mandate clients.

The debt office had initially offered a total of N150 billion through the debt auction but ended up with almost double of the amount it had inititally offered at the auction due to huge subscriptions by investors.

At the auction, the debt office received a total of N557.72 billion worth of subscription from investors while the DMO took advantage of the low yield to allot more debt to investors.

READ ALSO: Importation of unusable fuel: NNPC says not deliberate action, orders 2.1 bln liters of fuel

Yield on the bond were also mixed as the 10-year paper attracted 10.95 percent compared with 11.50 percent similar tenor paper attracted at the last month’s auction. Also, the 20-year debt attracted 13 percent yield, same rate similar tenor attracted at the last auction.

The debt office alloted N193.92 billion of the 20-year and N103.47 billion of the 10-year paper at the auction. In addition, the debt office allotted N49.93 billion of the 10-year paper and N68.10 billion of the 20-year to non-competitive bids.

Nigeria issues bonds monthly at an auction as part of measures to raise cash to cover deficits in the national budget, help commercial lenders manage their liquidity and set the benchmark interest rate for corporate debt notes.

President Buhari onTuesday asked the National assembly to approve N2.2 trillion additional funding  for fuel subsidy, pushing up the projected deficits for the year to around N7 trillion.

The West Africa’s country plans to raise half of the deficits amount from both local and foreign debt market.

Join Our Mailing List!

* indicates required
- Advertisement -spot_img
- Advertisement -spot_img
Must Read
Related News
- Advertisement -spot_img