The Debt Management Office (DMO) said yesterday that it raised N2.07 billion ($6.6 million) from a new two-year savings bond intended for retail investors, according to Reuters.
Nigeria forecasts a budget deficit of N2.36 trillion in 2017, half of which it aims to fund through domestic borrowing.
The DMO said it offered the bond to help broaden the country’s funding base. It will be available for purchase on a monthly basis and have a maximum subscription of N50 million. It carries a coupon of 13.01 per cent.
The March auction attracted subscription from over 2,500 applicants during the five-day sale period, the DMO said, adding that the next sale will be on April 3.
The government plans to increase public spending by almost 20 per cent this year and has obtained parliament’s approval for a $500 million Eurobond, after raising $1 billion from international debt market last month. Outstanding total debt rose to 17.4 trillion naira last year from 12.6 trillion naira in 2015 and is set to increase further, as Africa’s biggest economy grapples with its first recession in a quarter of century, caused by low oil prices.