The Debt Management Office, DMO, has unveiled plans to raise N105 billion ($345 million) in local-currency denominated bonds at an auction today, Wednesday, October 12.
The Debt office said it will raise N35 billion each from debt maturing in 2021, 2026 and 2036, using the Dutch auction system.
The DMO fourth quarter calendar showed that it would be raising between N250 billion and N340 billion ($794.91 million to $1.08 billion) in local currency-denominated bonds.
It said it would auction between N90 to N120 billion worth of bonds maturing in 2021, N70 to N100 billion in the debt maturing in 2026, and N90 to N120 billion worth in the paper maturing in 2036.
In its latest issuance calendar, the debt office said the bonds will be re-opened from previously issued debt. The Federal Government had planned to raise between N305 to N395 billion worth of debt in the third quarter but ended up issuing N460 billion worth.
Nigeria issues sovereign bonds monthly to fund its budget deficit, support the local bond market and create a benchmark for corporate issuance.
It has estimated that it will borrow around N900 billion from the local debt market this year to fund a budget deficit projected at N2.2 trillion, which has been aggravated by an economic slump as low oil prices slashed government revenues and weakened the naira.
