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FG's $1bn Euro-bond ready by December, says DMO

Source: pointblanknews.com
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The Director-General, Debt Management Office, Dr Abraham Nwankwo, has

assured that the one billion dollars Euro-bond proposed to be issued by

the Federal Government will be ready by mid-December.

He said this on Friday in Abuja at a news conference organised by the

Minister of Finance, Mrs Kemi Adeosun.
He said the DMO made requests for proposals for both local and

international managers who were interested to compete on Monday, adding

that the closing date was Sept. 19.
He said, “Immediately after that, we would fast track the process of

vetting, screening and selecting.
“We have a directive to make sure that we use minimum time to conclude all

these activities and we are working on that.
“So we assure you that because of the emergency situation, we would be

able to cut the time to realise the money to about 20 per cent of the

usual time required.
“Preferably, before mid December we will have the money.''

He said that it was important that the Federal Government was focused on

the fact that the money was needed urgently to proffer solutions to turn

around the economy.
Nwankwo also said the money would be used for capital projects.

“Every money borrowed in 2016 as far as the Appropriation Bill is

concerned would be for capital projects.
“We are following due process to restricted times and we are ensuring that

local banks and advisers would be involved so that they learn from the

process.
Adeosun on her part, said that the external borrowing plan was approved

two weeks ago and that it was very significant to the growth of the

economy.
“This is because we said we would borrow the cheapest money first, we have

approvals in that plan from the World Bank and the African Development

Bank.
“ With interest rates as low as 1.5 per cent and tenure as long as 40

years to intervene in some specific areas.
“These include agriculture, education, health, rebuilding of the North

East and the railway projects.''
The News Agency of Nigeria reports that the sale is the first tranche of a

4.5 billion-dollar Federal Government Medium-Term Note programme to run

through 2018.
The aim is to enable Federal Government to have the flexibility of quickly

taking advantage of favourable market conditions in the International

Capital Market to raise funds, if and only when the need arises.

NAN
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