Nigeria to sell N340 -N460bn Bonds in Q3, 2020 – DMO

Nigeria’s Debt Management Office (DMO) released its third-quarter debt issuance calendar on Thursday with a proposal to issue between N340 and N460 billion worth of domestic bonds between July and September, 2020.
It also released the details of the July 22, auction offer, which stood at N130 billion across four tenors of bonds ranging from 10-year maturity to 30-year tenor.
The DMO targets raising between N100 and N120 billion worth in a new issue with 25-year tenor, N90 to N120 billion worth of the 15-year paper, N60 and N90 billion of the 10-year debt and N90 and N120 billion in the longer tenor 30-year bond.
The debt office proposed to sell between N115 and N155 billion in August, N115 and N155 billion in September while the calender had proposed to raise between N110 and N150 billion in July, but the July auction has now been fixed at N130 billion.
At this month’s auction, the debt office said it will raise N35 billion each from the sales of 30-year, 15-year and 25-year tenor bonds at the auction, while it will N25 billion from the sale of 10-year bonds at the auction.
Nigeria has proposed to raise over N1. 5 trillion from the local debt market this year to offset the deficits component of its revised spending estimate of about N10.8 trillion.
The deficit will largely be financed by new borrowings estimated at N5.15 trillion. It is expected that N1.98 trillion of the new borrowings will be from external (multilateral) concessional sources, mainly the IMF, World Bank, African Development Bank and Islamic Development Bank.