Nigeria plans to raise between N210bn and N290bn ($1.33bn and $1.84bn) in sovereign bonds ranging between three and 10 years in the second quarter of the year, the Debt Management Office has said, more than its first quarter debt issuance.

The debt office said late on Tuesday that it would auction between N15bn and N25bn in three-year paper in April, N30bn-N40bn worth in five-year and 10-year bonds each in the same month, Reuters reported on Wednesday.

In May, the debt office plans to issue between 30-40 billion naira worth in five-year and 10-year bonds, respectively, while in June it would raise between N25bn and N35bn in five-year, seven-year and 10-year paper, respectively.

Nigeria, Africa’s second biggest economy, said all were re-openings of those previously issued, except for the issue of N25bn-N35bn in seven-year paper in June.

Africa’s biggest crude exporter issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

Nigeria’s secondary bond market remained subdued in the last two weeks as bond holders waited for the release of the second quarter auction calendar.

Dealers expect it will serve as a stimulus to boost activity in the secondary market in the coming days.

Source: Punch