The Debt Management Office on Thursday said it had issued N64.10bn ($394m)worth of 10-year sovereign bonds with different maturity dates at yields lower than its previous auction.

The debt office in a statement said it auctioned N34.10bn in the 10-year bond due to mature in 2018 and N30bn worth of the 10-year instrument maturing in 2019 at its last monthly debt auction of the year.

It added that all the sovereign bonds issued were re-opening of previous issues.

It said, “The paper with term to maturity of six years and five months and due in 2018 was sold at a 15.93 per cent marginal rate compared to 16.50 per cent at the previous auction, while the bond with a term to maturity of seven years and ten months due in 2019 was issued at a 15 per cent marginal rate against 16.50 per cent at the previous auction in November.”

Total subscription at Wednesday’s auction stood at N120.10bn, lower than the N157.72bn at last month’s auction.

The statement added that the original coupon rates of 10.70 per cent and seven per cent for the May 2018 and October 2019 would be maintained respectively.

The DMO had earlier said it planned to sell N65bn in 10-year sovereign bonds with different maturity dates on November 16.

The debt office said it would sell N35bn of 10-year paper due to mature in 2018 and N30bn in the 10-year paper maturing in 2019 at its eleventh monthly debt auction this year.

Yields on the instruments broadly rose to reflect the hike in the Central Bank of Nigeria’s benchmark interest rate by 275 basis points to 12 per cent last month.

Meanwhile, the naira strengthened against the United States dollar at the inter-bank market on Wednesday as about $216m sold by three energy companies to some banks provided support for the local currency.

The naira currency closed at N162.20 to the dollar on the inter-bank market, up from N162.40 on Tuesday.Traders said though the Central Bank of Nigeria failed to meet all demand at its bi-weekly auction on Wednesday, dollar sales by local unit of France Total, Agip and Royal Dutch Shell totalling $216m and direct sales by the regulator to some banks helped provide needed support in the market.

Source: Punch/Ademola Alawiye