ABUJA—As part of its fiscal funding plans, the Federal Government, through the Debt Management Office, DMO, is set to raise another bond amounting to N110 billion for budgetary deficit funding next week. The bond issue is coming against the backdrop of an emerging discord between executive and the legislative arms of government over resort to borrowings for budget funding. Next week’s bond issue will be the second this year, which in addition to another issue planned for next month, will bring total amount of debt raised in the first quarter of 2017 to N430 billion. Under the debt auction, the DMO said it will issue N45 billion of bonds maturing in 2021, N20 billion of 2026 paper, and N45 billion of bonds due in 2036, using the Dutch auction system. Settlement for the bonds, all of which are re-openings of previous issues, is expected Thursday, February 16, 2017. DMO uses monthly sovereign bond sales to support the local debt market, create a benchmark for corporate bonds a...
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