DMO unveils transaction advisers for naira 2.343 billion external borrowing

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From Uche Usim, Abuja

The Debt Management Office (DMO) revealed on Wednesday that the Federal Executive Council has approved transaction advisers for issuing Eurobonds on the international capital market (ICM).

The Eurobonds to be issued aim to raise funds for the new external borrowing of 2,343 billion naira (about 6.2 billion dollars) provided for in the 2021 budget law to partially finance the deficit. DMO, in a statement, noted that while the federal government expects a successful exit, it will be mindful of costs and risks (in terms of duration and pricing) when determining the amount of Eurobonds to issue. .

“Since Eurobonds are issued to partially fund the 2021 budget deficit, the proceeds will be used to fund various budget projects. In addition, the revenue will result in an inflow of foreign exchange, which in turn will increase Nigeria’s external reserves and support the exchange rate of the naira, ”the office added.

Transaction advisers of different categories are required to work with an issuer, in this case Nigeria, to ensure the success of the Operation.

For international bookkeepers; they are; JP Morgan, Citigroup Global Markets Limited,

Joint Leaders Standard Chartered Bank and Goldman Sachs; while the Nigerian bookrunner is Chapel Hill Denham Advisory Services Limited.

The financial advisor is FSDH Merchant Bank Limited; the international legal advisor is White & Case LLP; while the Nigerian legal adviser is Banwo & Ighodalo.

According to DMO, transaction advisers are the result of an open tendering process, as defined in the Public Procurement Act 2007 (as amended).

“A total of 38 institutions responded to the expression of interest, and after a rigorous assessment to determine the technical capacities of the respondents to execute the transaction, the above eight institutions were selected.

“With the approval of the transaction advisers by the FEC, the DMO will now accelerate activities for the issuance of Eurobonds.

“It will be recalled that the resolutions of the Senate and the House of Representatives, in accordance with the Debt Management Office (Establishment, etc.) Act of 2003 and the Fiscal Responsibility Act of 2003, had been obtained before, ”explained the DMO.

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