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HomeBusinessNigeria's debt office to sell N150 bln bonds at auction on Wednesday

Nigeria’s debt office to sell N150 bln bonds at auction on Wednesday

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Nigeria plans to raise N150 billion from the domestic bond market next Wednesday in furtherance of its domestic borrowing plan to finance this year’s budget deficits.

According to the Debt Management Office (DMO), Nigeria has proposed to issue N50 billion apiece in the 10-, 15- and 30-year bonds at the auction on June 23.

Nigeria issues bonds on domestic market monthly as part of measures to plug the deficit gap in the budget and also set the benchmark for domestic debt issuance.

This year, the government is expected to raise around N2.5 trillion from the debt market to finance the N5.5 trillion 2021 estimated budget deficit.

The balance is expected to be raise through eurobond and other external finance by the government, according to plans in the 2021 budget.

READ ALSO: Kenya gets huge demand for its $1 bln Eurobond offer

Last month, the debt office raised a total of N175.24 billion worth of bonds and paid higher rates across the board in a bid to lure more offshore investors to buy into the local debt.

Details of the results of the May debt auction published on the website of the Debt Management Office (DMO) showed that the amount raised was also higher than the N157.95 billion raised at the last month’s auction.

The debt office raise more money than the initial N150 billion proposed at the auction, consist of N50 apiece in the 10-, 15-, and 30-year debt instrument but ended up raising N175.24 billion as demand for the debt surged.

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