Nigeria bond sales beat expectations
Nigeria's eighth debt auction of 2010 raised NGN126.46 billion (€658.87 million) through the sale of sovereign bonds, the country's Debt Management Office has reported.According to Reuters, this was 20 per cent more than the body had predicted it would raise at the sale on Wednesday.
The majority (NGN42.49 billion) was raised by the three-year bonds, with NGN42.33 billion accrued by the disposal of five-year instruments and NGN41.64 billion generated by sales of their 20-year equivalents.
The release of around NGN704 billion in budget allocations to three tiers of the Nigerian government raised interest in the bonds, dealers said, as this helped to boost liquidity in the economy.
All the sales were made through re-openings of previous issues. The three, five and 20-year bonds all had their marginal rates increased slightly, however the original coupon rate was maintained.
The Central Bank of Nigeria recently took steps to further improve the country's financial sector, deciding banks in the country should make sure no more than five per cent of the credit they offer customers becomes classified as non-performing loans.