DMO To Raise N80bn In 2020, 2024 Bonds … Calls JP Morgan Bluff 

The Debt Management Office (DMO) plans to issue N80 billion ($400 million) worth of local currency denominated bond with maturities range between 5-year and 10-year on October 14, the office said Wednesday.
The debt office said it will issue N40 billion each in the debt maturing in 2020 and 2024 respectively at yields to be determined through Dutch Auction System (DAS).
All the bonds are reopenings of previous issues and results for the auction are expected the following day.
The DMO has allayed fears that Nigeria’s delistment from the Global Bond Index by JP Morgan will harm the economy.
Its Director-General, Dr. Abraham Nwankwo, said there was no cause for alarm.
He said JP Morgan did not establish Nigeria’s bond market, but only recognised its effectiveness over the years.
At a workshop for online publishers in Lagos last weekend, he said JP Morgan’s delisting did not mean the country’s bond market would die. 
“It was existing before JP Morgan observed and recognised it. The Nigerian bond market was built with indigenous Nigerian efforts. Over 99 per cent of investors in the market are local, Nigerian institutions and individuals,” he said.
Nwankwo said JP Morgan was reacting to the collapse of oil prices, which is an external thing.
“It is not reacting to any deficiency in the bond market itself.
“So, the bond market remains strong, effective,” he said.
He said Nigeria would work diligently to ensure that, in the next four years, it takes advantage of the shock caused by the collapse of oil prices to diversify the economy and set itself on a path of sustainable growth.
“Nigeria’s economy does not depend on JP Morgan. We have explained to Nigerians that the JP Morgan is recognition of achievement of Nigeria in the bond market,” he said.
‘’Half the Nigerian bonds listed on JP Morgan’s emerging markets bond index (GBI-EM) were removed last month and the rest this month,’’ the United States’ bank said.
The decision, which means investment funds tracking the index, will sell Nigerian bonds, adds to national borrowing costs from a sharp drop in oil revenues.

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