FG Denies Shelving $1b Eurobond Sale | Independent Newspapers Limited
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FG Denies Shelving $1b Eurobond Sale

Posted: Feb 11, 2016 at 2:48 pm   /   by   /   comments (0)

*To Hold Roadshow Next Month

The Federal Government, on Thursday denied reports that it has shelved plans to raise up to $1 billion through Eurobonds to plug its fiscal deficit, just as is scheduled to start meeting investors next month.

“The Eurobond is still very much on,” Finance Minister, Kemi Adeosun Adeosun told Bloomberg by phone on Thursday, in response to report from Reuters that the deal had been scrapped.
According to her, a non-deal roadshow “should be starting early next month” and the finance ministry is in the process of choosing banks to arrange it, she said.

Talks with Export-Import Bank of China for financing are ongoing, she said. Those are happening alongside discussions with the World Bank for a $2.5 billion loan and for $1 billion of funding from the African Development Bank.

The Federal Government plans to raise about $5 billion of external debt this year to help cover a record budget deficit that may be as high as $15 billion. It also plans to raise about the same amount from local debt markets.

Nigeria, which used to rely on oil for about two-thirds of government revenue, has seen its finances battered by Brent crude prices falling to 12-year lows of around $30 a barrel. Economic growth slowed to 3 percent last year, the slowest pace since 1999, according to the International Monetary Fund.

President Muhammadu Buhari, believes that increasing government spending is the only way for Nigeria to revive the economy.