Breaking News
Home / BUSINESS / Business News / FG Borrows Again, Goes for N450bn Bonds

FG Borrows Again, Goes for N450bn Bonds

The Debt Management Office (DMO), has said that the Federal Government is planning to borrow between N360bn and N450bn via sovereign bonds in the third quarter. The bonds will mature between five and 20 years.
The DMO said that it would auction between N90bn and N120bn in the five-year note and between N135bn and N165bn in the 10-year and 20-year debt between July and September.
The Federal Government issues bonds each month to help fund its budget deficit, support the local debt market and maintain a benchmark for companies to follow.
The country expects a budget deficit of N2.36tn this year as it tries to spend its way out of a recession.
It expects to raise money to cover more than half the gap from the local market.
In the meantime, the Federal Government has also said it is planning to borrow N1.24tn in the third quarter through the issuance of Treasury bills by the Central Bank of Nigeria, CBN.
A CBN debt calendar showed that it would sell N1.24tn worth of treasury bills from June 15 to August 31.
The apex bank aims to auction N226.64bn in 91-day bills, N311.32bn in 182-day and N698.64bn in 364-day debt.
CBN sells twice a month to help fund the government’s budget deficit and support commercial banks in managing liquidity.
The Federal Government has set out a budget plan worth N7.44tn for this year.
The country is dealing with its first recession in 25 years after a slide in global oil prices and due to the impact of attacks on oil facilities in the Niger Delta.
The Federal Government had lately issued a $300m diaspora bond.
The DMO said that Merrill Lynch and Standard Bank of South Africa were appointed as joint lead managers for the sale.
The country first unveiled in 2013 plans to sell diaspora bonds worth between $100m to $300m from Nigerians living abroad.

About DAO_Admin_01

Check Also

NOVA Merchant Bank Declares N1.15bn Profit After Tax

It has been a rosy time for NOVA Merchant Bank Limited as it declared a …

CBN to Open MFB Branches in 774 LGAs of the Country

By Tony Obiechina The Central Bank of Nigeria (CBN) is targeting to have Microfinance Bank …

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: