Nigeria issues 80 billion naira bond
The country is looking to counter-balance the effects from the fall in oil prices.Nigeria announced on Monday (January 11th) that it will issue an 80 billion naira (€370 million) bond on January 20th.
The Debt Management Office (DMO) said half of the bonds will mature in 2020, with the rest maturing in 2026.
Nigeria has proposed a plan to issue between 260 and 390 billion naira in five, ten and 20-year bonds in the first quarter of the year, Reuters reports.
The country will borrow about 900 billion naira locally to finance part of the 2.2 trillion naira deficit in its 2016 budget.
The country has stepped up debt issuance in recent months to gather resources in a bid to counter the global slump in oil prices. It issued 67.45 billion naira in treasury bills at the end of December.
The country generates 70 per cent of its revenue and about 90 per cent of its export earnings from oil.
The naira tumbled 21 per cent between June 2014 and February 2015, and the Central Bank of Nigeria said this week that it would no longer sell foreign exchange to bureau de change operators in a bid to stabilise the currency.
Credit Suisse estimates debt issuance will increase to $41 billion in 2016 from $30 billion this year.