Nigeria to raise 100 bln naira in 5,10-year bonds on Feb 21

Nigeria plans to raise 100 billion naira in sovereign bonds with 5-year and 10-year tenor on February 21, the Debt Mangement Office said on Tuesday.
The debt office said the 10-year paper was a fresh issue while the 5-year was a reopening of the previously issued paper.
"For Re-openings of previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument, The debt office said in a public statement.
Nigeria, Africa's biggest economy issue domestic debt via monthly bond issuance to plug the budget gap and help commercial lenders to manage their liquidity. The debt issuance also serves as a tool for liquidity tightening for the monetary authority.
The government has projected a budget deficit of around2,06 trillion for the year with half of the gap to be plugged by domestic borrowing.