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DMO unveils transaction advisers for N2.343 trillion external borrowing - THE SUN

AUGUST 05, 2021

The Debt Management Office (DMO) on Wednesday revealed that the Federal Executive Council has approved transaction advisers for the issuance of Eurobonds in the International Capital Market (ICM).

The Eurobonds to be issued are for the purpose of raising funds for the new external borrowing of N2.343 trillion (about $6.2 billion) provided in the 2021 Appropriation Act to partly finance the deficit. DMO, in a statement, noted that while the federal government expects a successful outing, it will be mindful of costs and risks (in terms of tenor and pricing) in determining the amount of Eurobonds to issue.

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

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

For the International Bookrunners; they are; JP Morgan, Citigroup Global Markets Limited,

Joint Lead Managers Standard Chartered Bank and Goldman Sachs; while the Nigerian Bookrunner is Chapel Hill Denham Advisory Services Limited.

The Financial Adviser is FSDH Merchant Bank Limited; the International Legal Adviser is White & Case LLP; while the Nigerian Legal Adviser is Banwo & Ighodalo.

According to DMO, the Transaction Advisers emerged from an Open Competitive Bidding Process as outlined in the Public Procurement Act, 2007 (as amended).

‘A total of 38 institutions responded to the Expression of Interest, and after rigorous evaluation to ascertain the technical capacities of the responders to execute the Transaction, the eight institutions above were selected.

‘With the approval of the Transaction Advisers by FEC, the DMO will now accelerate activities towards the issuance of the Eurobonds.

‘It will be recalled that the Resolutions of the Senate and the House of Representatives, in compliance with the Debt Management Office (Establishment, Etc.) Act, 2003 and Fiscal Responsibility Act, 2003, had earlier been secured,’ the DMO explained.


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