LAGOS Oct 13 Nigeria raised 95 billion naira
($312.50 million) at an auction of local currency bonds on
Wednesday, with the 2021 maturing debt attracting higher yield,
while the 2026 and 2036 paper fetched lower returns, data from
the Debt Management Office showed on Thursday.
The debt office sold 10 billion naira of 2021 paper at 15.29
percent at Wednesday's auction, compared with 15.14 percent at
the previous auction last month. The debt office had initially
offered 35 billion naira of the 5-year bond
It also sold 45 billion naira of 2026 debt at 15.47 percent,
lower than 15.53 percent, and 40 billion naira of 2036 debt at
15.48 percent, compared with 15.59 percent.
The debt office sold more than the initially advertised
amount of 35 billion naira apiece for the 2026 and 2036 paper at
Investors had demanded yields ranging between 12-17 percent
for all the debt on offer, but the debt office was not willing
to pay more for the debt, one trader said.
The West African nation has said it would borrow about 900
billion naira locally to finance part of the 2.2 trillion-naira
deficit in its 2016 budget, to plug shortfalls.
Nigeria issues local bonds as part of measures to finance
the government budget deficit and also to help manage liquidity
in the banking system
($1 = 304 naira)
(Reporting by Oludare Mayowa; Editing by Alison Williams)