FG Set To Borrow N395bn Via Bonds

The Federal Government is planning to borrow between N305bn and N395bn ($1.08bn-$1.40bn) in local currency-denominated bonds with maturities ranging from five to 20 years in the third quarter of this year, the Debt Management Office has said.

The DMO said on Wednesday it would auction between N105bn and N135bn worth of bonds maturing in 2021, 2026 and 2036 in July, while same bonds valued at between N95bn and N125bn would be sold in August; and N105bn and N135bn worth of the paper would be sold in September.

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Kemi Adeosun
Kemi Adeosun

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, Reuters reported.

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

The government has said it will borrow about N900bn locally to finance part of the N2.2tn deficits in the 2016 budget.

The debt office had on April 5 announced that it plans to raise between N274bn and N365bn in local currency-denominated bonds with maturities ranging between five and 20 years in the second quarter of the year.

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Daniel Enisan is a content writer at edliner.com. With a degree in mass communication, Daniel is a full breed journalist. Daniel is a realist, loves the use of sarcasm, a movie and music junkie. He is also a poet and a good listener.

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