By Oludare Mayowa
Nigeria plans to sell N150 billion worth of domestic bond at an auction next week, the Debt Management Office (DMO) said on Wednesday.
The debt office said it will raise N50 billion apiece in the 10-, 15-and 25-year tenor paper at the auction on April 21.
Nigeria issue long tenor bond on monthly basis as part of measures to plug its budget spending gap through borrowing on the domestic debt market.
The government had proposed to borrow around N2.5 trillion from the domestic market this year to finance the deficits of about N5 trillion in the 2021 budget.
In March, Nigeria raised a total of N262.10 billion from bonds auction and sustained the trajectory of higher returns on the three tenor paper across board.
READ THIS ALSO: Dubai Islamic Bank raises $500 mln in perpetual Sukuk
Total subscriptions stood at N333.48 billion at the auction, with demand for the 25-year tenor paper highest, according to the details of the auction released by the debt office.
The DMO sold N131.80 billion in the 25-year bonds at 12.00 percent rate, marginally higher than the 11.80 percent the paper was sold at the last auction.
The debt office sold N86.29 billion of the 15-year paper also at a higher yield of 10.50 percent, up from the 10.25 percent it was sold previously.