Nigeria raised 52.5 billion naira in local currency denominated bonds where yields climbed across the board on paper maturing in 2036, 2026 and 2020 at an auction on Wednesday, the Debt Management Office (DMO) said on Thursday.
The debt office said it sold 25 billion naira of 2036 paper at 13.90 percent at Wednesday’s auction, compared with 13.08 percent at the previous auction last month. The debt office had initially offered 50 billion naira of the 20-year bond.
It also sold 20 billion naira of 2026 debt at 13.74 percent, against 12.60 percent, and 7.50 billion naira of the 2020 debt at 13.24 percent against 12 percent.
The debt office sold less that the initially advertised amount of 40 billion naira for the 2026 and 15 billion naira for the 2020 paper at the auction.
Investors had demanded for yield ranging between 11-18 percent for all the debt on offer, but the debt office was not willing to pay higher for the debt, one trader said.
Subscriptions from investors stood at 159.60 billion naira, lower than the 206.72 billion naira demanded 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.
