Nigeria to Sell N190bn in Reopened Bond in August
The Nigerian Debt Management Office (DMO) has revealed plans to auction NGN190 billion in reopened bonds next week.
Debt office has raised N4.3 trillion from government bonds sales in the capital market in 2024, accounting for 70% of its borrowing plan to finance budget deficit for the year.
The Federal Ministry of Finance also announces government plan to issue a series 1 dollar-denominated FX bond in August 2024, offering $500.0 million, with an indicative yield of 9.5%–10%.
At the moment, timing and other relevant details still remain sketchy. Next week, debt agency is expected to conduct its monthly primary market auction, where it will offer investors N190 billion worth of government bonds.
This is in contrast with the past issuance offer size of N300 billion each month, suggesting the supply side is already slowing down ramping up funds from the primary markets auctions.
Details of the scheduled auction showed that DMO would offer a 5-year re-opening bond worth N70 billion to investors. Also, a 7-year re-opening bond of the same amount will also require a subscription.
DMO will also re-open a 9-year bond worth N50 billion. The secondary market recorded a yield surge to 20% at the beginning as a result of sell side activities amidst economic uncertainties, and inflation conditions.
In July, DMO only allotted ₦225.72 billion despite offering ₦300.00 billion worth of bonds. The total subscription was ₦279.67 billion. #Nigeria to Sell N190bn in Reopened Bond in August
