April 21, 2011 / 11:36 AM / 8 years ago

Nigeria sells 70 bln naira in bonds, yields rise

LAGOS (Reuters) - Nigeria sold 70 billion naira in 5-year and 3-year sovereign bonds at its fourth debt auction of the year, the Debt Management Office (DMO) said on Thursday.

The debt office said it sold 35 billion naira each in the 5-year and 3-year instruments at an auction on Wednesday, with marginal rates of 12.14 percent and 13.19 percent respectively, higher yields than at a previous auction in March.

Both papers were a reopening of the previous issue.

The 5-year bonds were issued at a marginal rate of 12 percent last month, while the 3-year paper was issued at 10.50 percent.

“However, the original coupon rates of 10.50 percent and 4.0 percent for the 3-year and 5-year offers respectively will be maintained,” the debt office said in a statement.

Total subscription stood at 129.22 billion naira compared to 102.27 billion naira last month, the DMO said.

Africa’s top energy producer issues bonds on a monthly basis as part of measures to finance its budget deficit, curb inflation and control money supply.

Inflation in sub-Saharan Africa’s second-biggest economy rose to 12.8 percent year-on-year in March from 11.1 percent the previous month.

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