Nigeria plans N95bn bond auction next week

Nigeria plans to sell 95 billion naira ($301.8 million) of bonds on Nov. 16, the Debt Management Office (DMO) to Reuters on Friday.

The office said it would sell 35 billion naira of a bond maturing in 2036, 25 billion naira of paper maturing in 2026 and 35 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 biggest economy 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 900 billion naira locally to finance part of the 2.2 trillion naira deficit in its 2016 budget. It is also seeking advisers and bookrunners to manage a planned $1 billion Eurobond sale this year.