Nigeria Plans 100 Bln Naira Bond Auction On May 22

Nigeria plans to sell 100 billion naira at a bond auction next Wednesday, the Debt Management Office (DMO) said on Wednesday as part of raising funds to finance government budget deficit.
The debt office plans to issue 35 billion apiece in the 10-year and 5-year debt note and 30 billion naira in the 30-year paper.
The DMO is offering the longest tenor paper for the second time this month, the debut 30-year bond was first issued at last month's auction.
Nigeria offers bond for sale at a monthly auction as part of its bid to raise fund for the budget deficit, help commercial lenders manage their liquidity and set benchmark for local corporate bond issuance.
Africa's biggest economy plans to spend 8.2 trillion this year while the deficit component of the budget stood at 1.62 trillion naira.
According to the government, half of the deficit will be raised from external borrowing while the balance will be raised from the domestic debt market.
Many fund managers, including offshore investors, showed preference for the 30-year bond at the last auction while they shun lower tenor paper.