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 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.