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DMO’s first Eurobonds listed in tranches on FMDQ and NSE

The Debt Management Office (DMO) has listed its first Eurobonds on the FMDQ Securities Exchange and the Nigerian Stock Exchange (NSE).

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Debt Management Office

The Debt Management Office (DMO) has listed its first Eurobonds on the FMDQ Securities Exchange and the Nigerian Stock Exchange (NSE).

On behalf of the Federal Government, the DMO listed the Eurobonds in a dual-tranche of $2.50 billion and a triple-tranche of $2.86 billion Eurobonds.

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While commenting on the Eurobonds listing, the Managing Director of FMDQ, Bola Onadele, commended the Federal Government for the landmark achievement. According to her;

“This was yet another highly exemplary and indeed, positive step towards supporting the growth and development of Nigeria’s DCM.”

Note that a breakdown of the Eurobonds listing is as follows:

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  • The 7.143 percent, 12-year, $1.25 billion FGN Eurobond.
  • The 7.696 percent, 20-year, $1.25 billion FGN Eurobond.
  • The 7.625 percent, seven-year, $1.118 billion FGN Eurobond.
  • The 8.747 percent, 12-year, $1 billion FGN Eurobond,
  • And the 9.248 percent, 30-year, $0.75 billion FGN Eurobond.

Purpose of the Eurobonds: Speaking during the listing on the FMDQ in  Lagos, the Director-General of the Debt Management Office, Mrs Patience Oniha, said that the bonds were raised for the refinancing of the country’s domestic debt.

According to her,  the $2.50 billion Eurobonds issued in February 2018 was meant for the refinancing of domestic debt, while  $2.86 billion dollars Eurobonds floated in November 2018 was purposely for the financing of the capital project of the budget.

The Eurobonds proceeds would be used to fund the fiscal deficit of the country, as well as other financing needs.

The efficiency of the Eurobonds: The Eurobond issuances are expected to spur private sector participation in the Nigerian capital markets as domestic investors stood to gain increased access to instruments in the secondary markets and a widened opportunity for portfolio diversification.

“The listing of the Eurobonds will also facilitate the inflow of foreign investment from international fund managers seeking to diversify their portfolios from both asset class and geographical perspectives, augment the domestic savings base and is ultimately expected to lead to more sustainable growth and development of the economy.”

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Famuyiwa Damilare is a trained journalist. He holds a Higher National Diploma (HND) in Mass Communication at the prestigious Nigerian Institute of Journalism (NIJ). Damilare is an innovative and transformational leader with broad-based expertise in journalism and media practice at large. He has explored his proven ability in the areas of reporting, curating and generating contents, creatively establishing social media engagements, and mobile editing of videos. It is safe to say he’s a multimedia journalist.

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Business

Just in: Fuel scarcity looms as NUPENG directs Tanker drivers to withdraw services in Lagos

This was disclosed in a press statement by NUPENG on Friday, August 7, 2020.

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The scarcity of petroleum products appears to be looming in Lagos as the leadership of Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) has directed its members to withdraw its services in Lagos with effect from Monday, August 10, 2020.

This is due to the failure of government authorities to address the various issues that have been causing serious pains and harrowing experience on the petroleum tanker drivers in the state for several months now.

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This was disclosed in a press statement by NUPENG on Friday, August 7, 2020.

 

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Details shortly…

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Business

President Buhari signs amended Companies Allied Matters bill

The President’s action on the document repealed and replaced the extant Companies and Allied Matters Act, 1990.

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Budget: FG completes just 31.7% of constituency projects, Nigerians react to President Buhari's signing of Finance Bill 

President Muhammadu Buhari has assented to the Companies and Allied Matters Bill 2020, which was recently passed by the National Assembly.

This was disclosed in a statement signed by a media aide of President Buhari, Femi Adesina and shared by the Personal Assistant to the President, Bashir Ahmad, via his Twitter handle.

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According to the statement, the President’s action on the document repealed and replaced the extant Companies and Allied Matters Act, 1990, and introduced several corporate legal innovations geared toward enhancing ease of doing business in the country.

Key innovations in the new Act:

* Filing fee reductions and other reforms to make it easier and cheaper for small and medium-sized enterprises to register and reform their businesses in Nigeria;

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* Allowing corporate promoters of companies to establish private companies with a single member or shareholder, and creating limited liability partnerships and limited partnerships to give investors and business people alternative forms of carrying out their business in an efficient and flexible way;

* Innovating processes and procedures to ease the operations of companies, such as introducing Statements of Compliance; replacing “authorised share capital” with minimum share capital to reduce costs of incorporating companies; and providing for electronic filing, electronic share transfers, e-meetings as well as remote general meetings for private companies in response to the disruptions to close contact physical meetings due to the COVID-19 pandemic;

* Requiring the disclosure of persons with significant control of companies in a register of beneficial owners to enhance corporate accountability and transparency; and

* Enhancing the minority shareholder protection and engagement; introducing enhanced business rescue reforms for insolvent companies; and permitting the merger of Incorporated Trustees for associations that share similar aims and objectives.

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Energy

NNPC signs agreement with CNOOC, SAPETRO to end OML 130 disputes

The agreement is expected to help resolve disputes stemming from Oil Mining Lease (OML).

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Crude oil market remains unpredictable- NNPC Boss

The Nigerian National Petroleum Corporation (NNPC), said it has signed a Head of terms (HoT) agreement with China National Offshore Oil Corporation(CNOOC) and an indigenous oil production firm —South Atlantic Petroleum (SAPETRO).

A statement that was issued by the state-owned oil company via Twitter, yesterday, noted that this is part of the efforts that have been undertaken towards resolving all the disputes stemming from Oil Mining Lease (OML) 130 Production Sharing Contract.

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READ ALSO: NNPC spends N535.9 billion on subsidy, FAAC in Q1 2020

Nairametrics understands that the agreement, which is temporary, could also be instrumental towards resolving similar disputes between the NNPC and other oil companies. The NNPC had previously accused some of these oil firms of under-declaring crude exports for three years between 2011 and 2013.

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READ ALSO: NNPC cultivates 2,675 hectares of cassava for Ethanol production

Specifically, the NNPC alleged that the likes of Shell, Total, Chevron, and Eni under-reported crude oil exports in their oil fields to the tune of 57 million barrels. The NNPC even sought repayments valued at $12.7 billion from the oil companies, according to a suit filed before the Federal High Court in Lagos. The companies denied the accusations.

The new agreement is now expected to help resolve such disputes. Even the NNPC’s Group Managing Director, Mele Kyari. was quoted to have said the agreement is “a major milestone toward the resolution of all disputes.”

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