States Raised N600bn through Bonds in 10 Years says DMO

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DMO’s Director-General, Dr. Abraham Nwankwo

From Benjamin A Ameh, Lagos.

The Debt Management Office (DMO) has put the total value of bonds issued by states through fund infrastructural development in the past 10 years at N600 billion.

The DMO’s Director-General, Dr. Abraham Nwankwo, said in the statement released and obtained by the News Agency of Nigeria (NAN) that N600 billion was raised and used by the state governments to refinance existing loans between 2005 and 2014.

Nwankwo pointed out that Nigerian corporate institutions, following the development of domestic bond market between 2005 and 2014 had issued debt instruments worth N223 billion.

“Following the development of domestic bond market between 2005 and 2014 Nigerian corporate institutions have issued debt instruments of about N223 billion, thereby contributing to the development of the real sector,’’ he said.

Nwankwo said the market also attracted supranational issuers of debt securities such as the International Finance Corporation (IFC), a member of the World Bank Group and Africa Development Bank.

The director-general said enviable achievements recorded in the development of the Federal Government’s Bonds Market earned international recognitions for the FGN bond market.

Nwankwo said the achievements included an active secondary market, creation of sovereign yield curve with tenure of up to 20 years and diversification of the investor base for fixed income securities.

In the statement, DG said the achievements recorded in the development of the domestic debt management led to the endorsement of the FGN bond market by reputable international financial institutions.

He said that the development led to significant in flow of foreign portfolio investments in the country with the inclusion of FGN bonds in the widely used JP Morgan’s Government Bond Index-Emerging Markets (GBI-EM) and Barclays Capital’s Emerging Markets-Local Currency Government Bond Index (EM-LCBI) in October 2012 and March 2013.

According him, DMO will continue to strengthen and deepen the FGN bond market for enhanced liquidity through the issuance of benchmark bonds and introduction of other varieties of debt instruments.

Meanwhile, DMO on Monday listed the outstanding FGN bonds amounting to N4.85 trillion and Nigerian Treasury Bills (NTBs) worth N2.80 trillion on the FMDQ OTC.


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