The Federal Government of Nigeria has hired 8 transaction advisers to facilitate the issuance of Eurobonds in the international capital market.

The essence of issuing Eurobonds, 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.

This was contained in a press statement released to journalists in Abuja by the Head of Media, Debt Management Office, Chinenye Onu.

The statement was titled; ‘Towards financing the 2021 Appropriation Act – FGN appoints transaction advisers for a Eurobond issuance’.

According to the statement, 38 institutions responded to the Expression of Interest, however 8 institutions were approved after rigorous processes by the Federal Executive Council (FEC), at its meeting on Wednesday, August 4.

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).

These transaction advisers were selected from an Open Competitive Bidding Process in line with the Public Procurement Act, 2007 (as amended) according to the statement.

 

The statement read in part, “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.

“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.

 

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.