As stated by the Debt management office of the nation, the Federal Government is planning to sell as much as $5.5bn of Eurobonds in the next three months to fund capital projects and replace naira-denominated debt.
The Director-General, DMO, Patience Oniha, said on Wednesday in an interview in Abuja that the government was planning to raise $2.5bn in October to help fund 2017’s N7.4tn budget, Bloomberg reported on Thursday.
She said the government would sell the remaining $3bn before the end of the year to replace naira-denominated debt.
Oniha said that 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,” she added.The yield on Nigeria’s $500m of Eurobonds due July 2023 rose four basis points by 1:26pm in London, extending Wednesday’s 15 basis-point climb, to 5.49 per cent, the highest since August 21.That on the nation’s dollar securities due in 2032 increased six basis points to 6.91 per cent, the highest since July 18.
Citigroup and Standard Chartered Plc, which helped the Federal Government to sell bonds this year, will be retained as bookrunners for the $2.5bn, and are in talks with the government to also lead the $3bn sale, according to the DMO director-general.
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