The Federal Government of Nigeria has appointed transaction advisers to facilitate the issuance of Eurobonds in the international capital market.
This was stated in a press statement entitled ‘Towards financing of the 2021 Credit Act – FGN appoints transaction advisers for a Eurobond issuance’, which was made available to our correspondent in Abuja on Wednesday by the Head of Media of the Debt Management Office. , Chinenye Onu.
The statement read: “Nigeria’s activities related to the issuance of Eurobonds in the international capital market increased today with the appointment of transaction advisers by the Federal Government.
“Typically for Eurobonds issuance, transaction advisors of different categories have to work with an issuer, in this case, Nigeria, to ensure the success of the transaction.”
The DMO said certain institutions have been approved by the Federal Executive Council at its meeting on Wednesday to advise on Eurobond issuance.
The institutions include International Bookrunner (JP Morgan, Citigroup Global Markets Limited), Joint Lead Managers (Standard Chartered Bank and Goldman Sachs), Nigerian Bookrunner (Chapel Hill Denham Advisory Services Ltd), Financial Adviser (FSDH Merchant Bank Ltd), International Legal Adviser (White & Case LLP) and Nigerian Legal Adviser (Banwo & Ighodalo).
It further stated that the transaction advisers were selected from an Open Competitive Bidding Process in accordance with the Public Procurement Act 2007 (as amended).
It added: “A total of 38 institutions responded to the expression of interest and after a thorough evaluation to determine the respondents’ technical capabilities to execute the transaction, the eight institutions above were selected.”
According to the press statement, the DMO will accelerate the issuance of Eurobonds based on the approval of the transaction advisors.
On the essence of the Eurobond issuance, the press statement said it is to raise money for N2.34tn’s new external loans (about $6.2 billion) envisaged in the 2021 credit law to partially close the deficit. finance.
It added that the funds raised would be used to fund various projects in the budget while boosting foreign exchange inflows, increasing Nigeria’s foreign reserves, and supporting the naira exchange rate.