DMO to Pick Advisers for $3.3bn Eurobond Via Open Bids

By February 17, 2020 Investment News

Federal Government has said it plans to appoint advisers for a $3.3 billion Eurobond issue through an open competitive bid process and expects to complete an approval process for the sale soon. This fact was stated by the Debt Management Office (DMO). The new Eurobond will be used to partly fund the government’s 2020 budget deficit and refinance an existing $500 million Eurobond due in January next year, the DMO said. “Whilst the approval process … is expected to be completed soon, transaction advisers … will be through an open competitive bidding process,” the DMO said.

Citigroup, Standard Chartered Bank and local firm FSDH Merchant Bank acted as financial advisers on the last Eurobond sale. The Buhari led administration has been considering a dollar bond issuance after staying away from the international debt market in 2019 due to time constraints before the end of its budget cycle. Nigeria held its last Eurobond sale in 2018, it’s sixth outing, where it raised $2.86 billion. Nigeria’s Eurobond plan comes after neighbouring Ghana sold a $3 billion Eurobond last week that was five times oversubscribed. Investors are seeking high-yielding debt despite the possible impact that the outbreak of coronavirus in China could have on its major trading partners in Africa.

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