Nigeria to raise 105bn naira in bonds next week

LAGOS: Nigeria plans to issue 105 billion naira ($667 million) in bonds with maturities ranging from 5-20 years at its second debt auction of the year on Feb. 13, the Debt Management Office (DMO) said on Friday.

The DMO said it will issue 35 billion naira each in the 5-year and 7-year notes, 20 billion naira in the 10-year bonds and 15 billion naira worth in the 20-year paper, using the Dutch Auction System.

The result of the auction is expected the following day.

Dealers expect the paper to be oversubscribed because of increased offshore investor demand in the local debt market and repayments of matured paper, which would boost liquidity.

Nigeria, Africa's second most developed bond market, issues bonds at monthly auctions to deepen the local fixed income market, help lenders manage their liquidity and raise cash to fund the budget deficit.