LAGOS: Nigeria plans to raise 90 billion naira ($452.26 million) worth in local currency denominated bond at an auction on Feb. 10, the second of such this year, the Debt Management Office (DMO) said on Thursday.
The debt office said it will sell 40 billion naira in paper maturing in 2020 and 50 billion naira in the debt maturing in 2026, using the Dutch Auction System, in which the price is lowered until the bond is bought.
Both debt notes are reopening of the previously issued bond. Nigeria is planning to borrow as much as $5 billion to help fund its budget deficit due to the plunge in oil, which has also sent the naira NGN=D1 currency into a tailspin.
It expects a deficit of 3 trillion naira ($15 billion) in 2016, up from an initial 2.2 trillion naira ($11 billion) estimate. Nigeria's total debt rose to 12.60 trillion naira ($65.42 billion) as of December 2015, up from 11.2 trillion naira in 2014.
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