Nigeria to auction $389mn worth of 2016, 2024, 2034 T-bonds on Nov 12

By bne IntelliNews November 6, 2014

Nigeria will offer a total of NGN65bn ($389mn) worth of three government bond issues at a domestic auction on November 12, the country’s Debt Management Office (DMO) said. The bonds are re-openings of previous issues.

DMO plans to sell NGN10bn of the originally three-year notes that mature on August 16, 2016 and carry an annual coupon of 13.05%, NGN30bn of the 10-year bond, which matures on March 14, 2024 and bears an annual coupon of 14.2%, and NGN25bn of the 12.15%-coupon 20-year bond, maturing in July 2034.

At its latest auction on October 15, the DMO sold NGN18.61bn of the 2016 papers at a yield of  12.14%, up from 11.49% in September, NGN30bn of the 2024 bond at a yield of 12.79%, up from 12.232% in September, and NGN25bn of the 2034 bond at a yield of 12.699%, up from 12.299% in September. Bids worth a total of NGN116.31bn were placed last month, down 34% from a month earlier.

Through its monthly government bond sales, the DMO aims to strengthen the domestic bond market, create a benchmark for corporate and municipal issuances and fund the federal government’s budget deficit.

Foreign investors’ interest in Nigeria’s bond market got a boost when JP Morgan added Nigeria to its local currency government bond index in October 2012, making it the second African country after South Africa to be included in a widely followed index. On August 29, 2014, JP Morgan included Nigeria's 2024 bond to the Government Bond Index-Emerging Markets (GBI-EM), in addition to the 2014, 2019 and 2022 bonds that were added in 2012. Barclays also added Nigerian central government debt to its index from March 2013.

Related Articles

AB InBev sells 54.5% stake in African Coke bottling business for $3.15bn

Anheuser-Busch InBev will sell a 54.5% stake in Africa's largest Coke bottler to Coca-Cola Company for $3.15bn, the two companies said in a joint statement on December 21. The deal is expected to ... more

IMF slashes South Africa’s 2016 growth outlook to 0.7%

The International Monetary Fund (IMF) has lowered sharply its 2016 GDP growth forecast for South Africa to just 0.7% from 1.3% anticipated in October, its World Economic Outlook (WEO) update released ... more

MTN Nigerian fine raised back to $5.2bn, court refuses to freeze company bank accounts

The record fine, imposed on South Africa-based telecoms group MTN by the Nigerian Communications Commission (NCC) has been raised back to $5.2bn, publications in local media revealed. The ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss