Nigeria plans to raise N135 billion (about $442.62 million) in bonds on August 23, the Debt Office said on Tuesday.

The Debt Office will sell N35 billion of bonds due in 2021 and N50 billion each of bonds due in 2027 and in 2037, using a Dutch auction system.

Settlement is expected two days after the sale. The bonds are re-openings of previous issues.

Nigeria, which has Africa's biggest economy, issues sovereign bonds each month to help fund its budget deficit, support the local debt market and maintain a benchmark for companies to follow.

Nigeria expects a budget deficit of N2.36 trillion this year as it tries to spend its way out of a recession. It expects to raise money to cover more than half the deficit from the local market. (Reuters)