The Federal Government is planning to sell N195.17bn ($981m) worth of three-month, six-month and one-year Treasury bills on August 5, the Central Bank of Nigeria has said.
The central bank said in a statement on Wednesday that it would sell N45.17bn worth of the three-month paper, N30bn of the six-month bill and N120bn in the one-year debt next week, using the Dutch auction system, Reuter reported.
The results of the auction are expected to be published the following day.
The CBN had said it would borrow about N872.96bn ($4.4b) in new Treasury bill issues between June 18 and September 3.
Data released by the central bank had shown that it would auction N215.12bn worth of the three-month paper, N238.5bn in the six-month debt and N419.34bn worth in the one-year paper.
The total debt proposed for the third quarter is 12.3 per cent short of the N995.5bn raised in the second quarter of the year.
Treasury bills are short-term debt obligation with a maturity of less than one year issued by the CBN through a competitive bidding process bi-monthly.
In the same vein, the Debt Management Office has said that the Federal Government would borrow between N180bn and N240bn through the sale of government bonds in the third quarter.
According to the DMO, the amount will be borrowed through the issuance of five and 20-year bonds.
The Head, Investment Research, Afrinvest West Africa, Mr. Ayodeji Ebo, said there was need for restraint in the manner the government was borrowing money via TBs and bonds.
0 comments :
Post a Comment