ABUJA, March 29 Naija247news – Nigerian goevrnment has priced a $500 million, 15-year Eurobond at five percent, the finance ministry said on Wednesday.
The Eurobond sale is part of Nigeria’s efforts to plug its record budget deficit.
Early in February Nigeria’s vice president and current acting president wrote to to parliament seeking approval for a new $500 million Eurobond sale, a statement said on Wednesday, after the country sold $1 billion worth of 15-year bonds earlier this month.
“Following the high over subscription of the recent $1 billion Eurobond issuance, we wish to take advantage of favourable market conditions to issue a Eurobond Debt Instrument of $500 million to fund the implementation of the 2016 budget,” Acting President Yemi Osinbajo said in a letter to parliament, according to Wednesday’s statement.
Nigeria has $500 million of commitments from its planned $1 billion Eurobond it intends to issue before the end of the year and any decision to increase the size of the offer will depend on pricing, Finance Minister Kemi Adeosun said recently.
“At the moment am focused on the $1 billion,” she said in a video recording to an investor conference in Lagos.
Adeosun said the country was “further along” with the African Development Bank for a $1 billion budget support loan than the World Bank due to scheduling issues.
“We have pushed World Bank funding into next year’s budget,” she said.
She said Nigeria was also interested it tapping funds at concessionary rates to develop its infrastructure and that most of the funding it was seeking would carry concessionary terms.
Adeosun said expected taxes collection as a percentage of GDP which is currently at 5 percent to hit 7 percent within three-years and to reach 10 percent within 5 years.