DMO raises N70bn bonds


Debt Management Office (DMO) has issued N70 billion bonds maturing in
2020 and 2024 at an auction, at lower yields than the returns at its previous auction.

DMO issued N30 billion in the 2020 debt at 10.24 per cent against 13.11 per cent at the previous auction in October. The same tenor bond closed at 10.16 per cent at the secondary market on yesterday.

A total of N20 billion of the benchmark bond maturing in 2024 was issued at 10.01 per cent compared with 13.87 per cent same tenor debt attracted at the October auction.

The 2024 paper closed at 10.26 per cent at the secondary market on yesterday.

DMO also allotted additional N20 billion worth in the 2020 paper on non-competitive basis to mandate clients.

Yields on country’s debt have dropped sharply since last month due to increased naira liquidity in the banking system, spurring demand for the local bond by pension, insurance firms and commercial lenders.

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