The Nigerian government through the Debt Management Office (DMO) is planning to raise money through a $3bn Eurobond issuance from the International Capital Market.
The DMO, in a statement on Thursday, issued by its spokesperson, Chinenye Onu, said all statutory approvals have been received and the funds will be used to support the 2021 Appropriation Act and finance various projects.
The government agency added that a virtual meeting will hold with foreign and local investors on Friday, September 17 and Monday, September 20, to share more information about the Eurobond.
The statement read, “The Federal Government of Nigeria has announced plans for a Eurobond issuance in the International Capital Market.
“The last time Nigeria accessed the ICM was November 2018. Virtual meetings with investors have been scheduled for September 17 and September 20, 2021.
“In order to avail local investors the opportunity to invest in the Eurobonds, meetings will also be held with local investors.
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“This is the first time local investors will be included in the roadshows, and this is one of the reasons why a Nigerian Book runner (Chapel Hill Denham Advisory Services Ltd) was appointed as one of the transaction advisers,” it stated.
According to the DMO, Nigeria is expected to raise up to $3bn but no more than $6.2bn from the Eurobond issuance.
The statement disclosed that beyond providing funding to part-finance the deficit in the 2021 Appropriation Act, the issuance of Eurobonds would help to increase external reserves and support the naira exchange rate and Nigeria’s sovereign rating as well as free up space in the domestic market for private sector and sub-national borrowers.
It added that the issuance of Eurobonds by Nigeria had opened up opportunities for Nigeria’s corporate sector notably banks, to issue Eurobonds to raise capital in the ICM.
By so doing, their capital base had been strengthened to provide banking services whilst also meeting regulatory requirements, the statement said.
