Nigeria to issue first 30-year Tenor Domestic Bond

Nigeria plans to issue its first 30-year tenor domestic bond, the debt office has said, in a move to attract long-term investors and extend the maturity profile of its debt.
The West African country currently issue 20-year tenor paper as the highest in its series of local debt note.
The debt office, however, did not disclose when it will kick-start the first auction where the 30-year tenor paper will be issued.
The new 30-year federal government bond would be attractive to long-term investors and would help in “developing the domestic capital market and reducing the re-financing risk” of the government, the Debt Management Office (DMO) said in a statement.
Nigeria’s debt office also said it expected the government to approve total borrowing of 1.649 trillion naira in 2019.
Half the debt, 824 billion naira, would be foreign borrowing, Patience Oniha, the director general of Nigeria’s Debt Management Office, told reporters in Abuja.
The funds raised would create jobs and build infrastructure, a debt office presentation said on Thursday, adding that the debt would be raised via federal government bonds, Islamic sukuk and green bonds to fund projects to reduce carbon emissions.
Nigeria’s parliament must approve the borrowing plan.
Nigeria issue domestic bond at a monthly auction to fund budget deficit, help banks to manage their liquidity and set a benchmark for domestic borrowing by corporates.
Africa's biggest economy' total public debt stood at 24.39 trillion naira at the end of 2018, up from 21.7 trillion naira a year earlier.