Nigeria To Raise N250-N340 Billion In Bonds

Nigeria-NairaNigeria plans to raise between N250 billion and N340 billion in local currency-denominated bonds in the fourth quarter, the Debt Management Office (DMO) said on Tuesday.

The DMO said it would auction between 90-120 billion naira worth of bonds maturing in 2021, 70-100 billion naira in the debt maturing in 2026 and 90-120 billion naira worth in the paper maturing in 2036.

In its latest issuance calendar, the DMO said that the bonds will be re-opened from previously issued debt.

Nigeria had planned to raise between 305-395 billion naira worth of debt in the third quarter but ended up issuing 460 billion naira worth.

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

Nigeria said it will borrow about 900 billion naira locally to finance part of the 2.2 trillion naira deficits in its 2016 budget.

Nigeria Raises N213 Billion In Treasury Bills

Nigeria-NairaNigeria raised 212.85 billion naira ($654.92 million) in an auction of treasury bills on Wednesday, with yields little changed from previous sales, data from the Debt Management Office (DMO) showed on Thursday.

The DMO raised 45.85 billion naira of three-month paper at 14.38 percent, down from 14.99 percent in mid-August; 62 billion naira of six-month bills at 17.50 percent, up from 17.48 percent, and 105 billion of one-year paper at 18.42 percent, down from 18.50 percent.

Higher subscriptions on the one-year sale suggested some offshore investors participated, market players said.

On Monday, offshore investors traded about $270 million through the interbank forex market to fund investments in naira debt.

FG Raises N219.58 Billion From Bond Market

Nigeria-NairaNigeria raised 219.58 billion naira in local currency denominated bonds with yields climbing across the board at an auction on Wednesday, the Debt Management Office (DMO) said on Thursday.

The DMO said it sold 40 billion naira of 2021 paper at 15.08 percent at Wednesday’s auction, compared with 14.50 percent at the previous auction last month.

It also sold 30 billion naira of 2026 debt at 15.28 percent, against 14.90 percent, and 40 billion naira of the 2036 debt at 15.53 percent against 14.98 percent.

The DMO sold 109.29 billion naira more than the initially advertised amount of 40 billion naira for the 2021 paper at the auction.

Total subscription at the auction stood at 210.29 billion naira, lower than the 231.76 billion naira demanded at the last sale.

Nigeria issues local bonds as part of measures to finance the government budget deficit and also help to manage liquidity in the banking system.

Nigeria Sells N170 Bln In Local Currency Bonds At Higher Yields – DMO

Treasury bills-nigeria-DeltaNigeria raised 170.18 billion naira in local currency bonds maturing in 2036, 2026 and 2020 at an auction, the Debt Management Office (DMO) said on Thursday, paying higher returns than at the previous auction on March 16.

The office said it sold 40 billion naira ($201 million) of 2036 paper at 13.08 percent at Wednesday’s auction, compared with 12.40 percent at the previous auction

It also sold 40 billion naira of 2026 debt at 12.60 percent, against 12.09 percent, and 20 billion naira of the 2020 debt at 12 percent against 11.33 percent.

The debt office allocated an additional 70 billion naira of the 2026 maturing debt to investors in a non-competitive tender.

Subscriptions from investors stood at 206.72 billion naira compared with 262.42 billion naira at the last auction.

Africa’s biggest economy issues local bonds as part of measures to finance the government budget deficit and also help to manage liquidity in the banking system.

Nigeria said it would borrow about 900 billion naira locally to finance part of the 2.2 trillion naira deficit in its 2016 budget.

Delisting By JP Morgan Not A True Reflection Of The Nigerian Economy – DMO

JP-MorganThe Director General of the Debt Management Office (DMO), Dr Abraham Nwankwo, on Wednesday said that the nations de-listing by JP Morgan from its emerging market bond index is not a true reflection of the nation’s economy.

Speaking at a news conference in Abuja, Dr Nwankwo told reporters that their action must have been informed by the crash in the price of oil.

He said that the nation’s economy has remained resilient compared with that of other oil exporting countries, stressing that the federal governments bond is still vibrant.

According to Nwankwo, Nigeria’s removal from the index “does not amount to a downgrade of Nigeria or FGN Bonds since JP Morgan is not a credit rating agency.

“It does not have any impact on the quality of the FGN Bonds.

“They remain risk-free securities that are backed by the full faith and credit of the Federal Government and are charged upon the general assets of Nigeria.

“It does not imply that the bonds are no longer liquid.’’

Liquid Currency Criteria

The index provider said Nigeria would not be eligible for re-inclusion in the index for a minimum of 12 months. It added that to get back in the reading, Nigeria would have to satisfy the consistent liquid currency criteria.

Meanwhile, the Central Bank of Nigeria, in reaction to the notice, said “it disagrees with the index expulsion”.

The apex bank also said it had started to improve liquidity and transparency in the market, just as foreign exchange traders confirmed that U.S. Dollars rationing to foreign investors has begun.

Nigeria became the second African country after South Africa to be listed in J.P. Morgan’s emerging government bond index, in 2012. Its inclusion adds a 1.8 per cent weight to the index.

JP Morgan Chase and Co. delisted Nigeria from its Government Bond Index for Emerging Markets (GBI-EM) for alleged lack of liquidity for transactions and transparency in the determination of exchange rate.

JP Morgan added Nigeria to its index in 2012 and on January 16, it placed Nigeria on a negative index watch and finally delisted Nigeria on September 8.

JP Morgan is the largest financial services holding company in the United States and the world’s fifth largest bank with total assets of $2.6 trillion.

Nigeria Raises N91 Bln In Bonds At Higher Yields

naira-notesNigeria raised N91 billion at a bond auction held on Wednesday with yields rising by more than one percentage point across all tenors, the Debt Management Office (DMO) said on Thursday.

A total of N20 billion worth of the 5-year bond was sold at 16.49 percent, up 95 basis points from 15.54 percent from the previous sale on Feb 11, the debt office said.

The 10-year paper was sold at 16.84 percent compared with 15.75 percent previously, raising a total of N40 billion, while N31 billion worth of the 20-year debt note was sold at a yield of 19.99 percent, up from 15.85 percent previously.

Dealers said the sale attracted low demand from investors.

Total subscriptions stood at N119.14 billion compared with N123.6 billion at the last auction.

Nigeria Aims To Raise N95 Billion At Bond Auction

naira-notesNigeria plans to raise N95 billion by selling sovereign bonds with maturities ranging between 5 and 20 years on March 11, the Debt Management Office (DMO) said on Wednesday.

The debt office said it will raise N35 billion in 5-year bonds and N35 billion each in the 10 and 20-year paper, using the Dutch auction system.

All the bonds are a re-openings of previous issues and the result of the auction is expected to be published on March 12, the DMO said.

Nigeria Sells N72 Billion In Bonds At Higher Yields

Money_newNigeria sold 72 billion naira of sovereign bonds at an auction on Wednesday, offering slightly higher yields on the debt notes to attract investors, the Debt Management Office (DMO) said on Thursday.

The DMO sold N28 billion in 2034-bond at 15.48 percent, compared with 15.49 percent at the previous auction last month and N20 billion in 2024-bond, at 15.43 percent against 15.2 percent at the previous auction.

A total of N24 billion in 2017-bond was sold at 15.2 percent, compared with 13 percent the note was last auctioned in June 2013.

Yields on Nigerian bonds have continued to rise at the secondary market as offshore investors exit the market on concerns on falling global oil price and depreciating local currency.

The Central Bank devalued the naira two months ago and in December tightened trading rules to try to curb speculation against the currency, slowing trading to a trickle. The naira had been hard hit by falling oil prices, cutting foreign income for Africa’s largest crude producer.

The devaluation of its target band by 8 percent to 160-176 against the dollar was meant to halt the slide in foreign reserves, but the naira has traded well outside that band – and reserves are still falling.

All the debt notes are re-openings of previous issues.

The DMO said in a notice it received a total of N129.5 billion in subscriptions for the bonds but allotted N72 billion .

Nigeria Sells N55 bln In Bonds At Mixed Yields

Money_newNigeria sold 55 Nbillion ($320 million) of sovereign bonds with maturities of 3-, 10- and 20-year at an auction on Wednesday, attracting mixed yields amid a sell-off on the secondary market, the Debt Management Office (DMO) said on Thursday.

The DMO sold N20 billion of 20-year paper at 13 percent, compared with 12.69 percent at the previous auction last month and N25 billion in 10-year bond, at 12.8 percent against 12.79 percent at the previous auction.

A total of N10 billion of the 3-year debt note was sold at 12 percent compared with 12.14 percent at the last auction in October.

All the debt notes are re-openings of previously issues.

Yields on Nigerian bonds have continued to rise at the secondary market as offshore investors exit the market on concerns on falling global oil price and rapidly depreciating local currency.

Aviation Ministry To Revert To Original Designs Of Abuja and Lagos Airports

Lagos AirportThe Senate Committee on Aviation has directed the Ministry of Aviation to revert to the original designs for the new terminals at the Lagos and Abuja International Airports.

The committee gave the directive at a meeting with officials of the Ministry of Aviation and the Debt Management Office (DMO).

The Ministry of Aviation had altered the design of the new terminals of the airports as a result of insufficient land.

At the meeting, the Committee on Aviation also sought clarification on the $500million loan from the Chinese Exim Bank for the construction of terminals at four international airports and the $100million counterpart funding for the project.

Responding, the Director-General of the Debt Management Office, Mr Abraham Nwankwo, said that the Ministry of Aviation had secured the counterpart loan of $100million and would start the repayment plan which would span seven years.

The American Transportation Safety Administration’s Attaché for Central and West Africa, Ms. Mcneir Loretta, had visited Nigeria on a three-day working visit in April.

Mcneir’s visit was a follow-up assessment to the aviation security audit that was carried out on the Murtala Muhammed International Airport, Lagos, and the Nnamdi Azikwe International Airport, Abuja in December 2013.

Mcneir, who is based in Senegal, commenced her programme with a courtesy call on the Acting Director-General, NCAA, Mr. Benedict Adeyileka.

She also met with the Managing Director, Federal Airports Authority of Nigeria, Mr. Saleh Dunoma, before visiting the Permanent Secretary, Ministry of Aviation, Dr. Jamilla Shu’ara.

Nigeria to raise N110 bln in bonds Next Week

Nigeria plans to raise N110 billion ($700.41 million) in bonds with maturities ranging from 5 to 10 years at its first debt auction of the year on Jan. 23, the Debt Management Office (DMO) said on Friday.

The DMO said it will issue N35 billion in the 5-year paper, N30 billion in 7-year notes and N45 billion in the 10-year bonds using the Dutch Auction System.

The result of the auction is expected the following day.

Nigeria issues bonds at monthly auctions to deepen the local fixed income market, help lenders manage their liquidity and raise cash to fund the budget deficit.

Nigeria To Raise N210-360b In 5-20-yr Bonds In Q1

The Debt Management Office (DMO) today revealed plans by the federal government to raise between 210-360 billion naira ($1.34-$2.29 bln) in sovereign bonds ranging between 5 and 20 years in the first quarter of the year in a statement.

The amount being proposed is higher than its 2012 fourth quarter debt issuance and a great amount than the debt issued in the corresponding period of last year.

The DMO said it plans to auction between 85-135 billion naira each in 5-, 7- and 10-year paper on Jan. 23, 75-135 billion naira in 5, 7, 10 and 20-year paper on Feb. 13 and sell 50-90 billion each in 5 and 10-year bonds on March 13.

All the bonds were re-openings of previous issues.

Offshore investors’ interest in local debt has surged since the inclusion of Nigeria’s debt by JP Morgan in its emerging market government bond index last October. Barclays will add Nigerian debt to its index from March 2013.

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