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FG Hires JP Morgan, Others On $6.2bn Fresh Borrowing

The Federal Government(FG) of Nigeria has appointed transaction advisers to facilitate the issuance of Eurobonds in the international capital market.

This was contained in a press statement titled ‘Towards financing the 2021 Appropriation Act – FGN appoints transaction advisers for a Eurobond issuance’, which was made available to our correspondent in Abuja on Wednesday by Debt Management Office’s Head of Media, Chinenye Onu.

The Publisher Nigeria gathered that the statement read, “Activities by Nigeria towards the issuance of Eurobonds in the International Capital Market inched forward today with the appointment of Transaction Advisers by the Federal Government.

“Typical of Eurobond issuance, transaction advisers of various categories are required to work with an issuer, in this case Nigeria, to ensure the success of the Transaction.”

The DMO said certain institutions were approved by the Federal Executive Council at its meeting on Wednesday to advise on the 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 line with the Public Procurement Act, 2007 (as amended).

It added, “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.”

According to the press statement, the DMO will speed up Eurobonds issuance activities based on the transaction advisers’ approval.

On the essence of issuing Eurobonds, the press statement said that it is to raise funds for the New External Borrowing of N2.34tn (about $6.2bn) provided in the 2021 Appropriation Act to part finance the deficit.

It added that the funds raised would be used to finance different projects in the budget, while boosting foreign exchange inflow, increasing Nigeria’s external reserves and supporting the naira exchange rate.

thepublisherngr

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