Nigeria sold 66.5
billion naira in 5-year and 3-year sovereign bonds at its second debt
auction of the year, the Debt Management Office (DMO) said on Thursday.
The debt office
sold 30 billion naira in the 5-year and 36.5 billion in the 3-year
instruments at Wednesday’s auction with marginal rates of 11 per cent
and 9.25 per cent respectively, slightly lower yields than at the
previous auction in January.
The 5-year bonds
were issued at a marginal rate of 11.13 per cent last month, while the
3-year instruments were issued at 10.40 per cent.
“However, the
original coupon rates of 5.50 per cent and 4.00 per cent for the 3-year
and 5-year respectively will be maintained,” the debt office said.
Both instruments
were first issued in 2010 and have since been reissued on a monthly
basis. Total subscription stood at 140 billion naira compared to 137.45
billion naira last month.
Traders attributed
the increase in subscription to the release on Monday of budgetary
allocations to the three tiers of government from federation accounts.
Africa’s top energy producer released 414 billion naira from federal accounts, helping to boost liquidity in the system.
