FG to auction N110 billion in bonds next week

Nigeria plans to raise N110 billion in local currency denominated bonds on August 17, the Debt Management Office (DMO) said on Thursday.

The office said it would sell N40 billion of a bond maturing in 2036, N30 billion of paper maturing in 2026 and 40 billion of debt maturing in 2021, using the Dutch auction system.

Results of the auction are expected to be released on the following day.

All the bonds on offer are reopenings of previous issues.

Africa’s top crude exporter issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

Nigeria plans to borrow about N900 billion locally to finance part of the N2.2 trillion deficit in its 2016 budget. It is also seeking advisers and book runners to manage a planned $1 billion Eurobond sale this year.