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Federal Government raises N160b in local bonds

Minister of Budget and National Planning, Sen Udoma Udo Udoma
The Federal Government has raised N160 billion ($525 million) in local currency bonds at its second debt auction this year.

The bonds were raised at yields lower than inflation rate.

The Debt Management Office (DMO) announced that it initially wanted to raise N110billion, but increased the offer due to demand, which was pegged at N337.03billion – a figure higher than N235.05billion demand at its previous sale.

The DMO said it raised N70billion of the paper maturing in 2036 at 16.77 per cent, lower than 16.99 per cent same instrument fetched at the previous auction, and paid 16.61 per cent for the N30billion raised in the paper maturing in 2026.

It issued N60billion in the note maturing in 2021 at 16.55 per cent against 16.89 per cent at the previous auction.

Meanwhile, the Federal Government said it has not decided on how much it wants to borrow from the World Bank.

Minister of Budget and National Planning, Sen Udoma Udo Udoma, who spoke yesterday said the decision will be taken after the passage of budget 2017.

The external borrowing is needed to help pay for record spending of $24 billion this year.

He said: “The figure will depend on the (2017) budget approved by the National Assembly.

“We are waiting for the passage of the budget by the National Assembly so that we will know the budget gap or the actual deficit before we can go to the World Bank for loan.”

This post first appeared on Chrisblend, please read the originial post: here

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Federal Government raises N160b in local bonds


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