The Debt Management Office, DMO, on Tuesday, said Nigeria plans to raise N130 billion ($427 million) from its third debt sale this year on March 15.

According to the debt office, it would issue N45 billion in bonds due in 2021, N50 billion maturing in 2027, and N35 billion due 2036, using the Dutch auction system.

The DMO added that it would begin with a high asking price that is lowered until the bond is sold, adding that settlement is expected on the day following the issue.

The bonds are re-openings of previous issues, except the 2027 which is a new issue.

Nigeria, Africa’s biggest economy, auctions sovereign bonds monthly to help fund its budget deficit, support the local debt market and to maintain a benchmark for companies to follow.

Earlier, the government had said that Nigeria expects a N2.36 trillion budget deficit for 2017, with about half of it funded through domestic borrowing.

Source: Premium Times