The Debt Management Office (DMO) on Tuesday indicated that the Federal Government would offer for subscription by auction N70 billion worth of bonds in its May 23 auction.
The offer circular which was hosted on the DMO’s website, showed that government would sell N20 billion of a five-year re-opening issue maturing in April 2023 at 12.75 per cent.
The Office also listed for sale by government a N20 billion seven-year re-opening bond to mature in March 2025 at 13.53 per cent and another tranche of N30 billion 10-year re-opening bond at 13.98 per cent to mature in February 2028.
Nigeria issues sovereign bonds on monthly to support the local bond market, create a benchmark for corporate issuance and bridge its budget deficit gap.
According to the DMO’s bonds auction schedule, the bonds are issued monthly or as need arises to finance government’s fiscal deficits in a non-inflationary and sustainable manner.
Bonds are fiscal instruments issued on needs to enhance fiscal discipline, refinance maturing debt obligations of government and to establish benchmark yield curve and develop and ensure liquidity in the domestic bond market on a sustainable basis.
They also help to enhance and deepen the savings and investment opportunities of the populace, and diversify government’s financing sources, amongst other benefits.
