The Debt Management Office, DMO, is set to raise N110 billion through the Federal Government, FGN, bonds on Wednesday, August 17.
This move is part of plans by the Federal Government to borrow N900 billion locally to finance the 2016 budget deficit amid the economy crunch.
The debt office, on Thursday, August 11, said that it would sell N40 billion of a bond maturing in 2036, N30 billion maturing in 2026 and N40 billion of debt maturing in 2021, using the Dutch auction system.
The results of the auction are expected to be released the following day. All the bonds on offer are re-openings of previous issues. The DMO usually issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.
In 2016, it plans to borrow about N1.884 trillion to finance the N2.2 trillion deficit in this year’s budget. It is also seeking advisers and book runners to manage a planned $1 billion Eurobond sale this year.
Recall that its Director General, Dr. Abraham Nwankwo, recently disclosed that the amount to be borrowed to fund the budget deficit would be dedicated to capital projects. The sum is expected to be borrowed from both local and international investors.
