Nigeria to issue $1bn Eurobond

The Federal Government is optimistic of selling a Eurobond worth around $1bn before the end of the year and is about to appoint managers for the transaction, according to the Minister of Finance, Mrs. Kemi Adeosun.

The Eurobond is part of the country's plans to borrow a total of N1.8tn ($5.8bn) from abroad and locally to fund an expected budget deficit of N2.2tn this year.

Reuters quoted Adeosun to have said on Friday on the sidelines of an investment conference at the London Stock Exchange, 'We are appointing parties this week, we are hoping to come before the end of the year.

'We have headroom and we are very fortunate in that regard, we have a very low debt to GDP ratio.'

Nigeria has slipped into recession for the first time in 25 years, brought on by low oil prices that have cut government revenues and weakened the Organisation of Petroleum Exporting Countries member's currency. Crude oil sales make up 70 per cent of national income.

The African Development Bank has said it will help the country to overcome its recession. The lender's board is expected to grant a $1bn loan at a rate of around 1.2 per cent, which Nigeria could use to help plug its deficit.

The Finance minister said she hoped oil prices would stabilise around $42 to $50 per barrel. Oil edged higher on Friday, with Brent crude futures 12 cents higher at $51.50.

Adeosun also said the government had spent N770bn on capital expenditures since President Muhammadu Buhari signed the 2016 budget in May. - Punch.