DMO to Issue $2.5b Eurobond in Q1 2018

By Modupe Gbadeyanka

Eurobonds worth $2.5 billion would be issued by the Nigerian government before the end of first quarter of 2018, Director General of the Debt Management Office (DMO), Ms Patience Oniha, has disclosed.

Ms Oniha, speaking in an interview with Reuters, said the money raised from the exercise would be used to refinance old debts.

The debt office chief noted that the issuance is dependent on market conditions and that the total sum could be raised at once or in tranches.

According to her, the $2.5 billion Eurobond issuance will complete the planned issuance of $5.5 billion Eurobond proposed in 2017.

“We are looking the issue probably first quarter depending on what the advisers say and subject to the market conditions,” Ms Oniha said.

In November last year, the Eurobonds worth $3 billion were sold by the government, part of which it used to fund its 2017 budget, and then paid off N198 billion in treasury bills in December.

Also in 2017, the federal government issued a N100 billion Sukuk to finance the construction of 25 economic roads.