The Federal Government will embark on two Eurobond raises before the end of the year. Director-General of the Debt Management Office (DMO) Patience Oniha disclosed this while being interviewed by Bloomberg. The funds raised will be used for various capital projects by government.
The government’s advisers “have told us the market is waiting,” “Work is already ongoing and we are just waiting for a resolution from the National Assembly to proceed.”
$2.5 billion will be raised in October, while $3 billion will be raised before year end.
Citigroup Inc. and Standard Chartered Plc, which helped Nigeria sell earlier bonds, have also been retained for this bond raise.
Why the bond raise ?
The Federal Government is embarking on another bond raise in order to meet its funding requirements. Two previous bond raising exercises held earlier this year were massively over -subscribed. Government is also raising the bonds because they are cheaper than raising money in Nigeria.
What is a Eurobond ?
A Eurobond is a debt instrument that is raised in another currency than the home nation. In this case, any currency that is raised.