Nigeria appoints Citigroup, Standard Chartered as joint manager for $2.868bn Eurobond

Date:

Separate $82.5 million to be raised to refinance previous bond
Senators want government to quickly proceed with issuance

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The Federal Executive Council (FEC) has approved six transaction parties to advise it on the issuance of $2.868 billion in Eurobonds. The FEC approved the appointment of Citigroup Global Market Limited, Standard Chartered Bank as joint manager; FSDH Merchant Bank Limited as financial adviser; White And Case LLP, Banwo and Ighodalo as legal adviser.

The proposed external borrowing is mainly to fund part of the 2018 budget signed into law in June 2018 by the President.

The government appointed Citigroup Inc. and Standard Chartered Plc to jointly manage the transaction, Finance Minister Zainab Ahmed told reporters. FSDH Merchant Bank is the financial adviser, she said.

The upper legislative chamber also approved the request by the executive to borrow $82.54 million from external institutions to refinance the balance of $500 million matured Eurobond in the international capital market.

Last week, Mr Buhari, in a letter to the National Assembly, had requested the resolutions of the parliament to approve the borrowing.

Buhari in June signed this year’s 9.1 trillion-naira ($25 billion) budget, the country’s biggest yet, which increases investment in roads, rail, ports and power to boost the economy. The International Monetary Fund forecast the economy of Africa’s largest oil producer will expand 1.9 percent this year following a contraction in 2016.

“The market is receptive to issuance from oil credits. With the exception of the ruble, which has had some political challenges this year, oil currencies have held up really well in 2018,” Kieran Curtis, fund manager at Aberdeen Standard Investments, said by phone. “Not to say that asset prices are totally immune from pressures. Spreads will be wider I suspect from the last issue Nigeria did, but the market conditions haven’t been as unhelpful for Nigeria as they have been for some of the other headline grabbing places.”

Some of Nigeria’s Eurobonds reversed their gains after the announcement. Yields on the $1.25 billion of notes maturing in February 2038 rose 5 basis points to 8.36 percent by 3:52 p.m. in London, having earlier been as low as 8.29 percent.

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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