FG to sell N130bn bonds on March 15

 
FEDERAL Government is planing to raise N130 billion from its third debt sale this year on March 15, the Debt Management Office said on Tuesday.
The debt office said 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 which begins with a high asking price that is lowered until the bond is sold.
Settlement is expected on the day following the issue. The bonds are reopenings of previous issues, except the 2027 which is a new issue.
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.
Government expects a N2.36 trillion budget deficit for 2017, with half of it funded through domestic borrowing.