DMO to raise balance of 2019 borrowing from Eurobond

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The Debt Management Office (DMO) says it will raise the balance of the 2019 borrowings from Eurobonds after exhausting the options of borrowing from multilateral and bilateral bodies at cheap rate.

Reacting to reports that it has no plans to issue Eurobonds as part of its external borrowing this year, the DMO in a press release issued yesterday said the 2019 Appropriation Act provides for New External Borrowing of N824.82 billion (equivalent of $2.7 billion at USD/N305).

To accomplish this, the DMO noted that consistent with its “strategy of reducing debt service cost, the plan for raising the New External Borrowing is to first access cheaper funding from Multilateral and Bilateral lenders as may be available.”

Thereafter, any balance the DMO said “will be raised from commercial sources which may include Securities Issuance such as Eurobonds in the International Capital Market.”

The DMO stated that it “will continue to focus on its objective of reducing debt service costs by emphasising borrowing from concessional sources while considering Eurobonds and other commercial sources as secondary options.”

The misrepresentation, it appears, arose during the Islamic Finance News Nigeria forum where the Director-General responded to a question on whether the Federal Government will issue a U.S. Dollar denominated Sukuk in 2019 to which she said “was unlikely given the processes involved in the Sukuk issuance.”

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Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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