Nigeria’s debt office opened bidding on Monday for a new two-year savings bond targeted at retail investors and carrying a coupon of 13.01 percent.

The Debt Management Office (DMO) has said the savings bond will help broaden the country’s funding base. It will be available for purchase on a monthly basis and have a maximum subscription of 50 million naira.

The bond will pay interest quarterly with a bullet repayment for principal at maturity. The initial offer will close on March 17, the DMO said.

Nigeria forecasts it will have a budget deficit of 2.36 trillion naira in 2017, half of which it aims to fund through domestic borrowing.

Outstanding local debt rose to 13.88 trillion naira last year from 8.83 trillion naira in 2015 and is set to increase further, as Africa’s biggest economy grapples with its first recession in a quarter of century, caused by low oil prices.

The government has said it will raise 130 billion naira at its third domestic debt sale this year on March 15 and sell 1.13 trillion naira worth of treasury bills by the second quarter.

Nigeria issued a $1 billion Eurobond last month and is now seeking approval from parliament for an additional $500 million Eurobond. It also plans to offer a 20 billion naira “green bond” in April.


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