DMO Will Borrow N900 Billion To Finance 2016 Budget Deficit

The Debt Management Office (DMO) said on Wednesday said the Federal Government will borrow the sum of N105 billion in local denominated bonds on May 11.

The DMO said that it would sell N50bn of a bond with a maturing date of 2036, N40bn of paper maturing in 2026 and N15bn of debt with a maturing date of 2020. All to be used in a Dutch auction system.

The DMO also announced that it will locally borrow N900 billion in order to finance a chunk of the of the N2.2 trillion deficit of the 2016 budget.

According to one of its important functions, the DMO issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.