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    Nigeria to launch Eurobond on Oct. 11, with Lagos, NY roadshows after raising N669 Billion from Sukuk Bonds

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    Naija247news Editorial Teamhttps://www.naija247news.com/
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    ABUJA, Aug 30 – Nigeria will launch its planned Eurobond issue on Oct. 11, its finance minister said on Monday.

    Zainab Ahmed also said the country would hold roadshows for the dollar-denominated issuance, which aims to raise roughly $3 billion, in Lagos and New York.

    The government is also targeting raising the same amount via multilateral and bilateral borrowing to fund its 2021 budget deficit.

    “We have an approval in the 2021 budget to fund the budget deficit 50% locally and 50% externally,” Ahmed said.

    “We are planning to do about half of that in eurobonds and the other half through other windows such as multilateral and bilateral sources.”

    Parliament in July approved external borrowing of roughly $6.2 billion.

    Meanwhile The Minister of Finance, Budget and National Planning, Zainab Ahmed, said the Federal Government raised N669 billion from the Nigerian capital market through issuance of Sukuk Bonds.

    Mrs Ahmed said this at the Chartered Institute of Stockbrokers (CIS) 2021 national workshop on Thursday.

    The theme of the national workshop was: “Leveraging the Financial Markets to Achieve Double- Digit Economic Growth for Nigera.”

    She said the Federal Government through the Debt Management Office (DMO) raised N669 billion from the capital market between 2018 and 2020.

    “The Federal Government through the DMO had raised up to N669 billion from the capital market through three different issuance of Sukuk Bonds.

    “This financing was used to construct and rehabilitate more than 44 roads across the six geo-political zones of our country.

    “Also worthy of note, is the offer for subscription of the Federal Government of Nigeria Savings Bonds of the DMO which has been executed successfully, bond issue after bond issue.

    “What is pleasing to us, is that every time the DMO goes for bond issue, the bond are several times oversubscribed.

    “This shows the interest of the investing public in Nigeria putting their monies to support the Federal Government of Nigeria in bridging our infrastructure deficit gaps,” Mrs Ahmed said.

    Nigeria, Africa’s largest economy, is struggling to boost growth after exiting its second recession since 2016 in the fourth quarter of last year. Its incoming statistician-general has said the nation is targeting gross domestic product growth above 5% for 2021.

    Its economy grew 5.01% in the second quarter, according to statistics released last week, as an easing of COVID-19 lockdown measures and an increase in vaccinations boosted commercial activities. However, persistently high inflation has dogged the nation.

    ($1 = 411.5000 naira)

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