Nigeria Raises 162 Billion Naira In First 2018 Auction
Business has kicked off in full swing at least for the government.
On Thursday, the Nigerian government through the Central Bank of Nigeria, CBN raised 161.54 billion naira at a treasury bill auction held on Wednesday – the first in the new year.
Also Read: Why You Should Invest In Treasury Bills Now
Traders said the treasury bills received subscriptions more than twice the amount on offer.
The CBN sold 115.85 billion naira of one-year debt at a rate of 14.30%. It auctioned 11.77 billion naira and 33.93 billion naira respectively in three- and six- months maturities at 12.54% and 13.92%.
Total subscription stood at 388.50 billion naira.
Read More: How To Invest In Treasury Bills
In December, the government repaid 198-billion-naira worth of treasury bills using part proceeds of a $3 billion Eurobond issue, instead of rolling over the debt to lower its borrowing costs. It plans to repay more bills this year.
Investors bid as high as 18.6% for the one-year paper. However, the government has been offering debt at lower yields to track declining inflation, which fell for the tenth month in November to 15.90%.
Also Watch: Treasury Bills: How To Calculate Your Earnings