The Federal Government is planning to issue
N80bn ($400m) worth of local currency denominated bond with maturities range
between five and 10 years on October 14, the Debt Management Office has said.
The DMO said on Wednesday that it
would issue N40bn each in the debt maturing in 2020 and 2024, respectively at
yields to be determined through Dutch Auction System.
All the bonds are re-openings of
previous issues and results for the auction are expected the following day.
Last week, the DMO said it was
planning to re-issue its five- and 10-year bonds in the last quarter of the
year to raise up to N270bn after JP Morgan’s index delisted half of the
maturities belonging to Nigeria.
The 10-year bond, among those to
be delisted on the influential index, rose to yield 15.09 per cent after the
DMO released its calendar indicating that it would re-introduce the benchmark
paper, which was not issued in the third quarter.
The DMO said it would sell between
N60bn and N90bn each in five- and 10-year bonds in each of the remaining three
months of the year as re-openings of outstanding maturities.
JP Morgan had removed half of
Nigerian bonds listed on its emerging markets bond index, as part of its
month-end index rebalancing, cutting the nation’s weight to 0.79 per cent.
The United States bank had warned
Nigeria this month that it would drop it from its index, citing a lack of
liquidity and currency restrictions.
The 2024 bond to be issued from
October will pay a coupon of 14.20 per cent while the 2020 paper will pay 15.54
per cent.
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