FG to raise N305-N395bn bonds in Q3

The Federal Government plans to raise between N305 billion and N395 billion ($1.08 billion -$1.40 billion) in local currency-denominated bonds with maturities ranging from five to 20 years in the third quarter of the year, the Debt Management Office (DMO) said on Wednesday.

The debt office said it would auction between N105 and N135 billion worth of bonds maturing in 2021, 2026 and 2036 in July, 95 and N125 billion worth of same debt in August and N105 and N135 billion worth of the paper in September.

In its latest debt issuance calendar, the debt office said the 2021 paper was a new issue, while the 2026 and 2036 maturing paper re-opened previously issued debt.

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

Nigeria said it will borrow about 900 billion naira locally to finance part of the N2.2 trillion deficits in its 2016 budget.