FG to Sale N110Bn Bonds

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The federal government has concluded plans to raise N110 billion ($553 million) in local currency denominated bonds on April 13.

The Debt Management Office (DMO) which made the disclosure said it will sell N50 billion of a bond maturing in 2036, 40 billion of paper maturing in 2026 and 20 billion of debt maturing in 2020, using the Dutch auction system.

Results of the auction are expected to be released on the following day. All the bonds on offer are reopening of previous issues.

The debt office said it plans to raise between N274 billion and N365 billion this quarter in local currency-denominated bonds, with maturities ranging between five and 20 years.

 Federal government issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

Government had earlier indicated it will borrow about N900 billion locally to finance part of the N2.2 trillion deficit in its 2016 budget.

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