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DMO To Raise N95bn Through Sale Of Bonds

The Debt Management Office (DMO) has said it will raise N95 billion through the sales of Federal Government of Nigeria Bonds next week Wednesday which will be the last bond auction for the year.

According to the debt office, it would sell N35 billion of a bond maturing in 2036, N25 billion of paper maturing in 2026 and N35 billion of debt maturing in 2021, using the Dutch auction system.

Last month, the DMO had raised N39 billion through bond sales much less than the N95 billion which it set out to raise.

It raised N5 billion from the 14.50 percent FGN Bond maturing in 2021 lower than N35 billion which it offered as total subscription was N16.46 billion.

Also it had raised N14 billion and N20 billion from the 12.5 per cent FGN Bond maturing in 2026 and 12.4 per cent FGN Bond maturing in 2036 lower than N25 and N35 billion which it offered on the bonds respectively.

Rising inflation in the country has lowered investors’ interest in the bond auction as they were sold at marginal rates of around 15 per cent as against investors’ bids of 18 per cent.

Inflation figures, according to the Nigerian Bureau of Statistics, is at 18.3 for the month of October and is likely to continue to rise.

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