Nigeria Raises ₦125b in 5-, 10-, 20-Yr Bonds at Lower Yields

Nigeria raised 125 billion naira 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 Feb. 10, the Debt Management Office (DMO) said on Friday.

The office said it had sold 40 billion naira of 2036 paper at par with 12.40 percent yield, 40 billion naira of the 2026 debt at 12.09 percent returns against 12.39 percent at the previous auction in February.

It also sold 20 billion naira of the 2020 debt at 11.33 percent against 12.19 percent previously.

The debt office also allocated an additional 5 billion naira of the 2020 maturing debt and 20 billion naira of the 2026 paper to investors in a non-competitive bid outside the auction.

Subscriptions from investors stood at 262.42 billion naira compared with 234.25 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.