CBN To Raise N1.07tn From Treasury Bills in Q2 | Independent Newspapers Limited
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CBN To Raise N1.07tn From Treasury Bills in Q2

Posted: Mar 12, 2016 at 12:05 am   /   by   /   comments (0)
Isuma Mark, Abuja
The Central Bank of Nigeria will borrow as much as N1.07 trillion through the issuance of treasury bills in the second quarter of 2016.
To achieve this, the apex bank has intimated that it would auction N303.77bn worth of 91-day bills, N169.98bn worth of 182-day paper and N599.63bn of one-year paper between March 17 and June 2 respectively.
Similar exercise in the first quarter carried out by the CBN on behalf of the Federal Government yielded N1.22tn.
Information from the Debt Management Office revealed that it would raise N100bn ($503.02m) in local currency denominated bonds with maturities ranging between five and 20 years on March 16.
In addition to that, it informed that it would further raise N40bn at par in the local bond maturing in 2036; N40bn of the paper maturing in 2026 and N20bn of the debt maturing in 2020 respectively.
To this end, the 2026 and 2020 maturing notes are re-openings of previously issued paper, while the 2036 maturing note is a fresh issue.
Explaining the circumstances especially the current economic climate against the backdrop of the proposed statutory allocation before the National Assembly, the Director-General of DMO, Dr. Abraham Nwankwo, said the fall prices of crude oil in the international market made this year’s deficit budget inevitable.
According to him, the DMO was prepared to borrow on behalf of the government to fund the deficit.
He however dismissed the fears in some quarters that the government might not be able to borrow from the bond market to finance any shortfall in the budget because of the recent delisting of Nigeria from the JPMorgan Bond Index.