By Sola Alabadan, Lagos
Nigeria plans to sell N60 billion ($300 million) of 5, 10 and 20-year sovereign bonds on May 13, the Debt Management Office (DMO) said on Tuesday.
This will be the fifth debt auction during the current year.
The DMO explained that it would sell N20 billion each of the papers, due to mature in 2020, 2024 and 2034 respectively.
The papers are re-openings of previous issues and the results of the auction will be published the following day.
Nigeria had on April 15 raised N70 billion about ($352 million) in sovereign bonds with maturities ranging between five and 20 years.
The country has been issuing sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.
Statistics obtained from the DMO on Monday indicated that the Federal Government of Nigeria bonds account for 60.63 per cent of the nation’s domestic debt.
Specifically, the FGN bonds contributed N4, 792,281,221,000 out of the country’s total domestic debt of N7, 904,025,474,000 as of December 31, 2014.
Nigerian Treasury Bills, on the other hand, accounted for N2, 815,523,753,000 or 35.62 per cent of the Federal Government’s total domestic debt profile, while treasury bonds accounted for N296, 220,500,000 or 3.75 per cent of the domestic debt.
However, the development stocks and promissory notes, two instruments that have been used in the past to raise funds for the government, are no longer in use as they did not appear on the list of instruments currently being used by the DMO to raise funds.
As of June 30, 2010, development stocks accounted for N220 million or 0.01 per cent, while promissory notes accounted for N63.03 billion or 1.67 per cent of the Federal Government’s domestic debt profile.
Source : Independent