DMO under new boss to auction sovereign bonds of less than N450bn in July

Barely one week after emergence of Patience Oniha as its new boss, the Debt Management Office (DMO) has concluded plans to raise a minimum of N360 billion and maximum of N450 billion sovereign bonds to mature between 5 and 20 years.

Disclosing this on Wednesday, the DMO said it would stagger the bond auction into split-units for effective performance of the exercise.

For instance, it will sell between N90-N120 billion in the five-year note and N135-N165 billion in the 10-year and 20-year note, between July and September.

Read also: FG promises to end recession by Dec, outlines 3-yr economic plan

Though DMO did not state the anticipated rate-yields for the bonds’ maturity, it only stated that buyers of older bonds are smiling to their banks due to good yields.

It would be recalled that at in June 2017, DVN had auctioned N140bn, after CBN had offered N133.24bn .

The DMO various sovereign bonds sales and those of CBN Treasury bills are part of internal borrowing aimed at closing up the gap in the 2017 budget $2.3 billion deficit.

It is expected that the sale of the financial instruments will reduce Nigeria’s over reliance on foreign loan facilities from known creditor agencies, including the IMF/World Bank, AfDB and others.

 

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