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Nigeria raises local currency bonds at yields below inflation – Reuters

LAGOS Jan 19 (Reuters) – Nigeria has raised 214.95 billion naira ($704.18 mln) in local currency bonds at its first auction this year, with the debts sold at yields below galloping inflation, the Debt Management Office said on Thursday.

Though yields were higher than at its last auction in December, the debt office said it received subscription of 235.05 billion naira for the bonds at the auction held on Wednesday.

Annual inflation in Nigeria climbed to a more than 11-year high of 18.55 percent in December, its eleventh straight monthly rise. The trend was worsened by dollar shortages, which have crippled the import-dependent economy and triggered its first recession in 25 years.

The government is also facing funding challenges brought on by the low price of oil. It expects the budget deficit to widen to 2.36 trillion naira this year as it tries to spend its way of out of the recession.

More than half of the deficit will be funded through local borrowings, the government has said.

The debt office on Thursday said it raised a 105.10 billion naira bond maturing in 2036 at 16.99 percent compared with 16.43 percent at its last sale.

It issued a 2026 bond to fetch 74.90 billion naira at 16.99 percent as against 16.24 percent last month and sold the 2021 note for 34.95 billion naira at 16.89 percent compared with 15.99 percent in December, the debt office said.

Nigerian government issues local currency bonds every month to raise funds to support its spending plan, which also goes to help the banking system manage liquidity.

($1 = 305.25 naira) (Reporting by Oludare Mayowa; Writing by Chijioke Ohuocha; Editing by Tom Heneghan)

 

Nigeria to raise 130 bln naira bonds on Jan. 18 -debt office – Reuters

LAGOS Jan 11 (Reuters) – Nigeria plans to auction 130 billion naira ($426 million) in local currency-denominated bonds on Jan. 18, its first debt sale this year, the Debt Management Office said on Wednesday.

The debt office said it would issue 40 billion naira apiece in bonds maturing in 2021 and 2036, and 50 billion naira of paper maturing in 2026, using the Dutch auction system.

Settlement for the bond sale is expected on the following day. All the bonds on offer are reopenings of previous issues.

Africa’s top crude producer and biggest economy issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

Last week, it said it plans to issue 340 billion to 430 billion naira worth of bonds during the first quarter.

The government has proposed a 2017 budget deficit of 2.36 billion naira for this year, which it aims to fund by borrowing 1.254 trillion naira domestically and 1.067 trillion naira abroad.

($1 = 305 naira) (Reporting by Oludare Mayowa; Editing by Catherine Evans)

 

Nigeria to sell up to 430 billion naira of bonds in Q1, debt office says – Reuters

LAGOS Jan 6 (Reuters) – Nigeria plans to issue 340 billion to 430 billion naira ($1.12 billion to $1.41 billion) of local-currency bonds during the first quarter, the Debt Management Office said on Friday.

The debt office said on its website it would auction 110 billion to 140 billion naira worth of bonds maturing in 2021 and 85 billion to 105 billion naira in debt maturing in 2026. It will also sell 45 billion to 55 billion naira in bonds maturing in 2027 and 100 billion to 130 billion naira of the 2036 debt.

According to the debt issuance calendar, the 2027 bond will be a new issue, in March. The rest will re-open previously issued debt, starting after Jan 18.

Africa’s biggest economy has proposed a 2017 budget deficit of 2.36 billion naira for this year. The government hopes to fund it by borrowing 1.254 trillion naira domestically and 1.067 trillion naira abroad.

But the government has already struggled to fund the 2016 budget after a planned Eurobond sale and World Bank loan were delayed.

($1 = 304 naira) (Reporting by Oludare Mayowa, editing by Larry King)