Bloomberg News

Nigeria Sells 70 Billion Naira of Bonds, Yields Rise

September 15, 2011

(Updates with analyst’s comments in third paragraph.)

Sept. 15 (Bloomberg) -- Nigeria sold 70 billion naira ($448 million) of bonds at an auction with yields for 5-year and 10- year notes rising while that for 3-year debt declined.

Africa’s biggest oil producer sold 20 billion naira debt due 2015 at 11.25 percent, 6 basis points higher than the last auction on Aug. 17, and 25 billion naira of bonds due in 2018 at 11.49 percent, or 10 basis points higher. The yield for 25 billion naira of 2014 notes was 2.5 basis points lower at 10.50 percent, according to details published today on the website of the Debt Management Office.

“Most traders had high expectations about interest rate hike but some lowered theirs after inflation figures were released yesterday,” Tayo Omidji, head of research at Lagos-based Sterling Capital Ltd. said today by phone. “It explains the rise in yields and also the decline witnessed.”

Nigeria raised its key rate to 8.75 percent on July 26, the fourth increase this year, to rein in inflation. Another rate announcement is due on Sept. 20. Price growth in the West African country decelerated to 9.3 percent in August, the lowest level in more than three years, the National Bureau of Statistics said yesterday.

Though investors bid for 2.7 times the amount on offer, there was no change in allotment, according to the Debt Management Office.

--Editors: Dulue Mbachu, Emily Bowers.

To contact the reporter on this story: Emele Onu in Lagos at

To contact the editor responsible for this story: Ana Monteiro at

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