Nigeria to raise N70 billion in local bonds
It said it would raise 40 billion naira through a first bond maturing in February 2020.Nigeria plans to raise 70 billion naira (€316 million) in two local bonds on September 16th, the Debt Management Office has announced.
It said it would raise 40 billion naira through a first bond maturing in February 2020 and 30 billion naira through a second one maturing in July 2034.
This announcement comes after JP Morgan said it will remove Nigeria from its Government Bond Index (GBI-EM) by the end of October, arguing that recently imposed currency controls were making transactions too complicated.
The country's central bank started restricting currency trading in December 2014 in an effort to stop the fall of the naira as oil prices tumbled.
According to Reuters, Nigeria's exclusion from the index will force funds to sell Nigerian bonds, triggering potentially significant capital outflows and raising borrowing costs for the government.