February 26, 2020 / 06:38 AM / By DMO / Header Image Credit: DMO Nigeria
The Debt Management Office (DMO), on behalf of the Federal Government of Nigeria (FGN), has issued an Expression of Interest (EOI) calling for submissions from institutions who wish to work as Transaction Parties for a possible Issuance of Eurobond of up to USD3.30 billion in the International Capital Market (ICM) in 2020. The Expression of Interest is for the appointment of international and local financial institutions who will serve as Bookrunners and Financial Advisers, and international and local law firms that will serve as Legal Advisers for the Eurobond Issuance. The Parties will be appointed on the basis of Open Competitive Bid.
As earlier communicated, Nigeria plans to raise external capital of up to USD3.30 billion in the year 2020. The USD3.30 billion is made up of USD2.80 billion (equivalent of N850 billion at the Budget Exchange Rate of N305/USD1.00) to part-finance the Deficit in the 2020 Appropriation Act, and USD500 million for the refinancing of Nigeria's debut Eurobond of USD500 million (6.75% USD500M JAN 2021) which will mature on January 28, 2021. The raising of the capital and the appointment of Transaction Parties is subject to the receipt of all necessary approvals.
Whilst the process of appointing Transaction Parties has begun, the plan remains to access external capital from concessional and semi-concessional sources and raise the balance from the International Capital Market. The decision to commence the process of appointing Transaction Parties at this time for a possible Issuance of Eurobond, is to ensure that in the event that Nigeria needs to access the capital market, the capital raising will be done in a timely manner. This in turn will make the funds available to the Government for the implementation of the Capital Projects in the 2020 Budget, thereby leading to job creation and economic growth, amongst other benefits.
The Expression of Interest is available here