The Federal Government planned to raise between N274bn ($1.4bn) and N365bn in local currency-denominated bonds with maturities ranging between five and 20 years in the second quarter of the year, the Debt Management Office said on Monday.
Reuters quoted the DMO as saying it would auction between N15bn and N25bn in five-year paper in April, along with N35bn to N45bn worth in 10-year debt and N45 to N55bn in 20-year bonds. In May, the debt office plans to issue between N10bn and N20bn worth of five-year paper, N35 to N45bn of 10-year bonds and N45bn to N55bn of 20-year debt.
In its latest bond issuance calendar, the debt office also said it will in June raise between N10bn and N20bn in five-year, N35bn to N45bn in 10-year and N45bn to N55bn worth of 20-year paper. The Federal Government said all were re-openings of those previously issued.
The country issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit. The Federal Government had said it will borrow about N900bn locally to finance part of the N2.2tn deficits in its 2016 budget.
Towards the end of January this year, the Federal Government had indicated its interest to seek from the World Bank and the African Development Bank the sum of $3.5bn (N697bn) in emergency loans to fill a growing gap in its budget in the latest sign of the economic damage being wrought on the nation by tumbling crude prices.
The $2.5bn (N498bn) loan from the World Bank and a parallel $1bn (N199bn) loan from the AfDB, which will enjoy below-market rates, must still be approved by both banks’ boards, according to a report by the Financial Times.
Under World Bank rules, its loan will be subject to an IMF endorsement of the government’s economic policies and bank officials said they would have to be confident that the Nigerian government was undertaking significant structural reforms.
