Nigeria auctions N123bn in sovereign bonds

By Udeme Ekwere with agency report

Friday, 22 Oct 2010

The Debt Management Office said on Thursday that Nigeria sold N122.93bn in 20-year, seven-year and three-year sovereign bond, at its 10th debt auction of the year.

For the 20-year instrument, Nigeria sold N58.76bn, while N37.50bn was sold for the seven-year bond and N26.67bn was traded in the three-year instruments on Wednesday.

Reuters quoted a statement from the DMO as saying that all the instruments were re-openings of previous issues.

The marginal rate on the three-year bonds rose to 10.50 per cent from 8.43 per cent last month, while that of the seven-year paper was 11 per cent, and the 20-year bond rate climbed to 14 per cent from 12.53 per cent.

”However, the original coupon rates of 5.50 per cent, 9.25 per cent and 10 per cent for the three-year, seven-year and 20-year respectively will be maintained,” DMO said.

It had initially offered N142.81bn, but later reduced it to N122.93bn, inspite of the N160.05bn.

Meanwhile, the Central Bank of Nigeria has said that it planned to raise a total of N125.79bn in treasury bills.

The treasury bills totaling $825m would run for a 91-day, 182-day and 364-day as from next week.

CBN said it would issue N30bn in 91-day bills, N45.79bn in 182-day bills and N50bn in 364-day bonds, using the Dutch Auction System next Thursday.

According to the apex bank regulator, the results of the auction will be released the following day.

The treasury bills are issued regularly, as part of monetary control measures to curb inflationary growth and help banks to manage their liquidity.


Source: Punch

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