LAGOS, AUGUST 24, 2017 – Nigeria raised 56.05 billion naira ($178.50 million) at a bond auction on Wednesday, less than half the amount on offer as domestic pension funds and insurance firms cut demand due to low yields, traders said on Thursday.
The Debt Management Office (DMO) put 135 billion naira worth of bonds maturing in 2021, 2027 and 2037, on offer. However, investors shunned the auction to take positions on the relative liquid secondary market.
The DMO paid 16.80 percent for the 2021 and 2027 bonds and 16.90 percent for the 2037 debt. Investors demanded for yields as high as 17 percent, auction results showed.