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Fed Govt to sell N55b bonds on October 19

By on October 13, 2011

The Federal Government is to sell N55 billion ($346.13 million) in three-year, five-year and 10-year sovereign bonds on October 19, at its 10th monthly debt auction this year, the Debt Management Office said on yesterday.

The debt office,  according to Reuters, said it will sell N8billion of the three-year maturity, N17billion of five-year and N30 billion of 10-year bonds, which are due to mature in 2014, 2015 and 2018.

All are re-openings of previous issues and the results of the auction will be published the following day.

“Kindly note that for re-openings of previously issued bonds (for which the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus accrued interest from the original issue date,” the Debt Office said in a statement.

Dealers said they expect that the recent hike in the CBN’s benchmark interest rates would be reflected in the outcome of the auction.

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