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Central Bank to Auction N149 billion in T-Bills, DMO to sell N 70 billion Bonds

By on February 17, 2012

Nigeria’s apex bank, the Central Bank of Nigeria (CBN) has disclosed its readiness to auction N149.65 billion worth of treasury bills at its bi-monthly debt auction next week.

N49.65bn in 91-day paper and N50bn each in 182-day treasury bills and 364-day bills are to be auctioned next Wednesday using the Wholesale Dutch Auction System (WDAS).

According to a statement from the CBN on the modalities, it said, “each bid must be in multiples of N1,000 subject to a minimum of N10,000. Yields on the papers were generally lower at the last treasury bill auction because of a surge in demand from offshore interest in local debt.”

Also the Debt Management Office has released a circular on its website notifying the public that the Federal Government would be issuing N 70 billion worth of sovereign bonds on February 29.

According to the DMO, “The bonds are being issued on behalf of the Federal Government by the Central Bank of Nigeria and are reopening of previously issued bonds. The 2019 bond will attract seven per cent interest rate while the 2022 bond will yield 16.39 per cent. The bonds will be auctioned in N1,000 per unit subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter while the interest is payable semi-annually.

“For reopening of previously issued bonds, (where 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 DMO reserves the right to alter the amount allotted in response to market conditions.”