LAGOS, Nov 22 (Reuters) - Nigeria sold 50 billion naira ($317.06 million) worth of 7-year and 10-year sovereign bonds maturing in 2019 and 2022 at an auction on Wednesday, with yields falling more than 100 basis points on both.
Nigeria sold 25 billion naira apiece in the 7-year and 10-year bond at 12.49 percent and 12.01 percent each, compared with 13.74 percent and 13.5 percent respectively at the last auction.
Total subscription for the notes stood at 121.01 billion naira, compared with 144.32 billion naira at the last auction.
Nigeria was included in the JP Morgan’s Government Bond Index for emerging markets (GBI-EM) on Oct. 1, spurring a fall in local bond yields that has steadily continued.
The inclusion in the JP Morgan index is expected to attract about $1.5 billion in offshore investment in the local bond market, the bank says.
Africa’s second-biggest economy issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit. ($1 = 157.70 naira) (Reporting by Oludare Mayowa; Editing by Tim Cocks)