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FG to borrow N1.24tn via TBs in Q3 – CBN

By on June 11, 2017

The Federal Government is planning to borrow N1.24tn in the third quarter via the issuance of Treasury bills by the Central Bank of Nigeria.

A CBN debt calendar for the third quarter released on Friday showed that it would sell N1.24tn ($4.1bn) worth of treasury bills from June 15 to August 31.

The apex bank aims to auction N226.64bn in 91-day bills, N311.32bn in 182-day and N698.64bn in 364-day debt.

The central bank sells TBs twice a month to help fund the government’s budget deficit and support commercial banks in managing liquidity.

The Federal Government has set out a budget plan worth N7.44tn for this year.

The country is grappling with its first recession in 25 years after a slide in global oil prices and due to the impact of attacks on oil facilities in the Niger Delta.

The country is expected to face a budget deficit of about N2.21tn for the year as it tries to spend its way out of recession. It expects to raise money to cover more than half that deficit through domestic borrowing.

The Federal Government had on Thursday announced plans to start an international road show next week for the sale of a diaspora bond.

The DMO said in a statement that the government had named Bank of America Merrill Lynch and Standard Bank of South Africa as joint lead managers for the sale.

The country first unveiled in 2013 plans to sell diaspora bonds worth between $100m to $300m from Nigerians living abroad. But the government at the time did not appoint a bookrunner until an election brought the opposition into office.

A roadshow will start on June 13 with meetings planned in Britain, Switzerland and the United States, the debt office said in a statement.

“Nigeria has filed a registration statement for the bonds with the United States Securities and Exchange Commission,” the statement said.

The DMO said the bonds would be listed in London but gave no price expectations, Reuters reported.