Debt Office Raises ₦121b in Bonds at Higher Yields

Nigeria raised 121 billion naira ($372.88 million) in an auction of local-currency bonds on Wednesday, with yields higher across the board, the Debt Management Office said on Thursday.

The debt office sold 15 billion naira of 2021 paper at 15.14 percent at Wednesday's auction, compared with 15.08 percent at the previous auction last month, Reuters reports.

It also sold 30 billion naira of 2026 debt at 15.53 percent, against 15.28 percent, and 60 billion naira of 2036 debt at 15.59 percent, compared with 15.53 percent.

The debt office also allotted an additional 16 billion naira worth of the 2021 debt on a non-competitive basis to mandate clients.

The West African nation has said it would borrow about 900 billion naira locally to finance part of the 2.2 trillion-naira deficit in its 2016 budget, to plug shortfalls.

Nigeria issues local bonds as part of measures to finance the government budget deficit and also to help manage liquidity in the banking system.