Nigeria increases its domestic debt profile by 85 bln naira

Nigerian domestic debt rose by additional 85 billion naira on Thursday with the successful issuance of fresh 3-year and 10-year bonds by the Debt Management Office (DMO) to investors.

DMO DG, Nwankwo

The Debt office issued 35 billion naira in the 3-year debt note, which would mature in August 2016 and 50 billion naira worth in the 10-year paper, maturing in March 2024.
The 3-year paper was issued at a marginal rate of 14.10 percent, compared with 13.49 percent at the previous auction in February, while the 10-year paper attracted a yield of 14.20 percent.
The paper maturing in March 2024, was a fresh issue.
The debt office had initially offered 45 billion naira apiece in the two maturities, but ended up increasing the amount sold on the 10-year paper and reducing the 3-year paper.
Total demand stood at 185.56 billion naira, with subscription for the 10-year paper heavier at 114.34 billion naira.
Nigeria is currently owing 7.12 trillion in domestic debt as at December 31, 2013. the debt comprised bonds, treasury bills and treasury bonds.
A breakdown of the debt showed that federal government outstanding bonds stood at 4.22 trillion naira, treasury bills at 2.58 trillion naira , while treasury bond stood at 315.39 billion naira.