DMO Raises N125bn In 5-, 10-, 20-Year Bonds At Lower Yields | Independent Newspapers Limited
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DMO Raises N125bn In 5-, 10-, 20-Year Bonds At Lower Yields

Posted: Mar 21, 2016 at 1:00 am   /   by   /   comments (0)

The Debt Management Office (DMO) raised N125 billion in local currency-denominated bonds maturing in 2036, 2026 and 2020 at an auction on Wednesday, paying lower yields than at the previous auction on February 10, it said on Friday, reports Reuters.
The office said it had sold N40 billion of 2036 paper at par with 12.40 percent yield, N40 billion of the 2026 debt at 12.09 percent returns against 12.39 percent at the previous auction in February.
It also sold N20 billion of the 2020 debt at 11.33 percent against 12.19 percent previously.
The debt office also allocated an additional N5 billion of the 2020 maturing debt and N20 billion of the 2026 paper to investors in a non-competitive bid outside the auction.
Subscriptions from investors stood at N262.42 billion compared with N234.25 billion at the last auction.
The Federal Government issues local bonds as part of measures to finance the government budget deficit and also help to manage liquidity in the banking system.
It would borrow about N900 billion locally to finance part of the N2.2 trillion deficit in its 2016 budget.