Nigeria to raise 105bn naira bonds on May 11

LAGOS: Nigeria plans to raise 105 billion naira ($527.90 million) in local currency denominated bonds on May 11, the Debt Management Office (DMO) said on Wednesday.

The office said it will sell 50 billion naira of a bond maturing in 2036, 40 billion of paper maturing in 2026 and 15 billion of debt maturing in 2020, using the Dutch auction system.

Results of the auction are expected to be released on the following day.

All the bonds on offer are reopening of previous issues.

Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

It plans to borrow about 900 billion naira locally to finance part of the 2.2 trillion naira deficit in its 2016 budget.