Investors bid high as Nigeria bond auction raises 80 bln naira, less than amount on offer

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LAGOS, Feb 22 – Nigeria raised 79.62 billion naira ($260.20 million) at an auction of government bonds on Wednesday, less than it originally planned, after it got fewer subscriptions for the most liquid five-year debt, traders said on Thursday.

The Debt Management Office (DMO) initially intended to raise 100 billion naira. It got subscriptions of 117.58 billion naira, more than half skewed towards the 10-year bond.

The DMO sold 27.18 billion naira in five-year bonds at 13.70 percent and 52.44 billion naira in 10-year debt at 13.98 percent. The five-year bond is due in 2021, the 10-year, a new offering, in 2028.

Investors bid as high as 16 percent for the bonds at the auction.

The government has been working to lower its borrowing costs, particularly as inflation fell for the 12th time in a row in January. It sold Eurobonds last Thursday to help repay some treasury bills rather than rolling them over as it has done in the past.

Investors are waiting for the debt office to announce which bills it intends to pay off and a reduction in auction volumes for second quarter, which could spur buying. ($1 = 306.00 naira) (Reporting by Chijioke Ohuocha, editing by Larry King)

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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