FG to borrow N110bn through bond next week

The Federal Government is planning 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, 30 billion naira 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.

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

Federal government 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 bookrunners to manage a planned $1 billion Eurobond sale.