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All plans are in progress for the Federal Government to conclude the sale of $3.3 billion Eurobond through open competitive bids, as the President Muhammadu Buhari-led administration is set to appoint advisers for the Eurobond.

According to the Debt Management Office (DMO), which made the disclosure, the approval process for the Eurobond will soon be completed.

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Why the issuance of Eurobond: The DMO stated that the new Eurobond would be used to partly fund the government’s 2020 budget deficit and refinance an existing $500 million Eurobond due in January next year (2021).

“Whilst the approval process … is expected to be completed soon, transaction advisers … will be through an open competitive bidding process,” the DMO said.

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What you should know: After staying off the international debt market in 2019, the Federal Government has been considering a dollar bond issuance.

[READ MORE: FG shares N8.15 trillion with states, others in 2019)

While Citigroup, Standard Chartered Bank and local firm FSDH Merchant Bank acted as financial advisers on the last Eurobond sale in 2018, Nigeria raised $2.86 billion in the sale, which happens to be the sixth of its kind.

Standard chartered

FG’s initial suspension of eurobond sale: Contrary to investors’ projection concerning Nigeria’s debt profiles for 2019, it was disclosed that the federal government would put a stop to borrowing from the international debt market as the government has opted for domestic debt market.

The debt office said the government would no longer seek funds in the international debt markets for the remaining months in 2019. This was contrary to investors’ projection on the country’s debt financing for last year.

Standard chartered

The Eurobond suspension by the government was made known by DMO’s Director-General, Patience Oniha, who stated that due to the coming to an end of the implementation of the 2019 budget, the government would not be selling international debt. So, the government would depend on the domestic debt market to raise N802.8 billion in 2019. This was part of its new domestic borrowing plan.

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