DMO Exceeds Borrowing Target for Q1, Raised N586 bln
Having raised N586 billion from the local market already from bonds auctions, Debt Management Office, DMO, has outpaced the agency’s N480 billion target for the first quarter (Q1) of the fiscal year 2022, FSDH Capital said in a market report.
MarketForces Africa reported last month that the debt management agency plan to borrow N480 billion from the debt capital market in the first three months of the year.
In its note, FSDH Capital revealed that to date, the DMO has raised ₦586 billion at its bond auctions without the small sums it makes from the sale of other instruments such as Sukuk and green bonds.
FSDH Capital said in the note that the agency’s total borrowing translates to 23 per cent of the total FGN domestic borrowing program for 2022, excluding the proposed supplementary budget of ₦2.55 trillion.
At the current pace, the investment banking firm is of the opinion that the DMO is well placed to achieve domestic funding with sufficient room to cover some of the supplementary expenditure.
Given the strong levels of system liquidity from maturing securities, FSDH Capital said in the report that the DMO has increased its sales relative to the offered size in recent auctions.
Since November 2021, yields have dipped in the secondary market. However, yield retracement may occur in 2Q22 as the amount of maturing securities decreases, FSDH Capital said. # DMO Exceeds Borrowing Target for Q1, Raised N586 bln
