$2.8 Billion Eurobond: Nigeria Plans A Roadshow In London
Nigerian officials will go on a roadshow to London next week ahead of a planned $2.8 billion Eurobond sale this month.
Two banking sources told Reuters on Thursday that the roadshow, which is being organised by Citi bank and Standard Chartered, will run from November 12 for three days and be attended by the Finance Minister, Zainab Ahmed.
Recall that the Senate last month approved the Eurobond issue but advised the government to limit foreign borrowing and boost revenue.
Last year, Nigeria sold $3 billion in Eurobonds, part of which it used to fund its 2017 budget. It then followed with a $2.5 billion Eurobond sale in February to refinance local currency bonds at lower cost.
Lawmakers said the new bond issue will raise foreign borrowing to 32% of Nigeria’s total debt, up from 30% as at June this year.
After Nigeria’s economy emerged from recession last year, the government approved a three-year plan in 2016 to borrow more from abroad. It wants 40% of its loans to come from offshore sources to lower borrowing costs and help to fund record-high budgets.
As part of the Eurobond plans, Nigerian officials also met fund managers in September on a non-deal roadshow in New York to update bondholders on the country’s growth plans.
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