Nigeria to raise $1B Eurobon

Nigeria to raise $1B Eurobon

FRIDAY EKEOBA

As part of its drive to galvanize finance in tackling major economic demands, the Federal Government has concluded plan to raise $1 Billion from International Capital Market in 2016.

According to the Debt Management Office, the $1billion sale is the first tranche of a $4.5 billion Nigeria Global Medium-Term Notes Issuance Programme that runs through 2018.

In a statement on its website DMO explained that it is seeking two lead managers and a financial adviser to organise the issuance of the $1 billion Eurobonds this year.

Also, DMO is seeking to appoint two international banks as joint lead managers and a local bank as financial adviser for the whole programme.

Explaining further, the statement said bids are to be submitted by noon on September 19, in Abuja to “enable Nigeria to have the flexibility of quickly taking advantage of favorable market conditions in the international capital market to raise funds if and only when the need arises.”

The statement added: “The Federal Republic of Nigeria (FRN) is in the process of establishing a $4.50 billion Federal Government Medium Term Note (FGMTN) programme, 2016-2018, out of which it intends to issue $1.00 billion Eurobond in the year 2016.

The purpose of establishing the FGMTN programme is to enable the FRN have the flexibility of quickly taking advantage of favourable market conditions in the International Capital Market (ICM) to raise funds, if and only when the need arises”