Monday 26th June, 2017
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FG to sell N430bn of bonds in Q1, says DMO

FG to sell N430bn of bonds in Q1, says DMO

The Federal Government plans to issue 340 billion to 430 billion Naira ($1.12 billion to $1.41 billion) of local-currency bonds during the first quarter, the Debt Management Office said at the weekend.

The debt office said on its website it would auction 110 billion to 140 billion Naira worth of bonds maturing in 2021 and 85 billion to 105 billion Naira in debt maturing in 2026. It will also sell 45 billion to 55 billion Naira in bonds maturing in 2027 and 100 billion to 130 billion Naira of the 2036 debt.

According to the debt issuance calendar, the 2027 bond will be a new issue, in March. The rest will re-open previously issued debt, starting after Jan 18.

Africa's biggest economy has proposed a 2017 budget deficit of 2.36 billion naira for this year. The government hopes to fund it by borrowing 1.254 trillion naira domestically and 1.067 trillion naira abroad.

But the government has already struggled to fund the 2016 budget after a planned Eurobond sale and World Bank loan were delayed. (Reuters)