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Nigeria sells 162.6 bln naira of Islamic bonds - debt office

Published 15/06/2020, 12:36
© Reuters.

ABUJA, June 15 (Reuters) - Nigeria has raised 162.56 billion
naira ($450 million) to help finance infrastructure projects
through the sale of Islamic bonds to local funds and insurance
companies, the Debt Management Office (DMO) said.
The government had planned to sell 150 billion naira of the
sukuk in its third outing, the DMO said, but it increased the
size of the offer after it received a more than four-fold
subscription.
The agency said it expected to issue more bonds to improve
infrastructure and plans to use the proceeds of the sukuk sale
to finance 44 road projects across Nigeria.
It did not give the maturity or the yield for the
naira-denominated bonds.
Africa's biggest economy had a series of debt issues lined
up this year before the new coronavirus pandemic triggered a
plunge in oil prices, Nigeria's main export, forcing the
government to shelve foreign commercial borrowing. The government is now tapping domestic markets and
concessionary loans to help fund its 2020 budget deficit which
has been worsened by lower oil prices that have slashed revenues
and weakened the naira currency NGN= .
The oil price crash has also triggered excess naira
liquidity on domestic money markets as foreign investors sell
Treasury bills, a situation that has helped created dollar
shortages in Nigeria, whose economy is projected to contract as
much as 8.9% this year. ($1 = 361.00 naira)

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