DMO To Issue N90bn Bonds On Feb 10, CBN Sells N242bn TB At Higher Yields 

The federal government plans to raise N90 billion ($452.26 million) worth in local currency denominated bond at an auction on February 10, the second of such this year, the Debt Management Office (DMO) said today.
The debt office said it will sell N40 billion in paper maturing in 2020 and N50 billion in the debt maturing in 2026, using the Dutch Auction System, in which the price is lowered until the bond is bought.
Both debt notes are reopening of the previously issued bond.
Nigeria is planning to borrow as much as $5 billion to help fund its budget deficit due to the plunge in oil, which has also sent the naira into a tailspin.
It expects a deficit of N3 trillion ($15 billion) in 2016, up from an initial N2.2 trillion ($11 billion) estimate.
Nigeria’s total debt rose to 12.60 trillion naira ($65.42 billion) as of December 2015, up from 11.2 trillion naira in 2014.
Meanwhile, the Central Bank of Nigeria (CBN) sold N242.38 billion ($1.22 billion) worth of three month to one year treasury bills on Wednesday, at higher yields than in its previous auction yesterday.
The bank raised N50 billion more than initially planned as it increased the amount of six-month paper auctioned from the N30 billion it had previously announced, to N80 billion.
It sold N45.17 billion of three-month paper at 4.95 per cent, up from 4.29 per cent at a sale on January 20.
The bank sold N80 billion of six-month debt at 7.97 per cent against 7.59 per cent, while it sold N117.21 billion of one-year paper at 9.49 per cent compared with 9.32 per cent.
Total subscription stood at N400.82 billion, compared with N288.98 billion.
The 3-month bills closed at 4.59 percent on the secondary market on Wednesday, the 6-month traded at 7.87 per cent while the one year paper closed at 8.45 per cent.

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