The Debt Management Office DMO has disclosed plans to raise another ₦70 billion through a sovereign bond auction by next week.
According to DMO, while giving details in a notice, said it would issue a five-year bond to raise ₦10 billion at 14.50% coupon rate and also sell a 10-year paper to fetch ₦30 billion at 13.98% coupon rate using the Dutch auction system on March 21.
The bond auction also includes a new seven-year note to raise another ₦30 billion. The result of the auction is expected on March 23, the DMO said.
Recall that the country recently raised a $3 billion in a two-part international bond sale as it seeks to fund a fiscal deficit in the budget and also reduce its local-currency debt burden.
The DMO has also redeemed a portion of the government’s maturing treasury bills instead of rolling over the debt as it has done in the past and plans to cut the amount it raises at home from future auctions.
The DMO was established on 4th October 2000, to centrally coordinate the management of Nigeria’s debt, which was hitherto being done by a myriad of establishments in an uncoordinated fashion.
The office is saddled with the responsibility of putting in place a good debt management practices that make a positive impact on economic growth and national development, particularly in reducing debt stock and cost of public debt service in a manner that saves resources for investment in poverty reduction programs