FG Borrows N110bn via Bonds

The Federal Government on Wednesday at an auction raised N110bn worth of bonds maturing in 2021, 2026 and 2036, the Debt Management Office said

According to DMO’s auction result obtained from its website on Wednesday, it sold N40bn of 2021 paper at 14.50 per cent.

It also sold N30bn of 2026 paper at 12.50 per cent and N40bn of 2036 paper at 12.40 per cent, the News Agency of Nigeria reported.

The summary stated that an additional N109.5bn of the 14.50 per cent July 2021 bonds was allotted on non-competitive basis.

Subscriptions from investors for the July 2021 bond, which was reopened, stood at N74.37bn, while that of January 2026, which was also reopened, stood at N71.06bn.

Subscriptions for the March 2036 bond which was also reopened stood at N64.86bn.

The DMO issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

The Federal Government said it would borrow about N900bn locally to finance part of the N2.2tn deficits in its 2016 budget.

Meanwhile, the Federal Government imported $227m of sugar in the first seven months of this year, the Central Bank of Nigeria said, Bloomberg reported.