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Citi Group, Standard Chartered, Stanbic IBTC, others to handle $2.5b Eurobond

Adeosun on recessionNigeria is set to take $2.5billion Eurobond to refinance external borrowing, following yesterday’s approval by the Federal Executive Council (FEC)
Minister of Finance Kemi Adeosun broke the news at a post-FEC briefing in Abuja.
Others at the briefing were Minister of Information Lai Mohammed, Minister of Interior Abdulrahman Danbazzau, Minister of State for Aviation Hadi Sirika and Minister of Communication Adebayo Shittu.
Mrs. Adeosun said that the government had re-appointed a consortium of banks to handle the $2.5 billion Eurobond.
The banks are: Citi Group, Standard Chartered, StanbicIBTC, Whitten-Case and African Practice.
On the potential savings on the proposed USD2.5 billion refinancing, Mrs. Adeosun said the estimated proceeds of N762.5 billion will be used to redeem the Nigerian Treasury Bills (NTB).
She said: “At estimated current NTB rates of 15% (following mop-up operations by the CBN), the savings from the refinancing of N762.5 billion of Domestic Debt using external capital raising is about  N64 billion per annum.”
On the impact of the use of the proceeds of the USD500 million issued in November 2017, she said “The proceeds about N162.50 billion were used to redeem NTBs which matured in December 2017.
“The immediate impact was a significant drop in the Bid Rates at the Auctions of both NTBs and FGN Bonds. In December 2017 and January 2018:
“NTBs dropped from about 16% to 13%. FGN Bonds dropped from about 16-16.50% to 13.50%
“This translates to savings for Government on new borrowing while also making the cost of borrowing for the real sector cheaper since the sovereign rate serves as a benchmark for other borrowers.” she added.
Mohammed, said the reinstatement of Executive Secretary of the National Health Insurance Scheme (NHIS) Prof. Usman Yusuf, would not stop the Economic and Financial Crimes Commission (EFCC) from continuing with his ongoing probe.
The information minister had admitted that he was not aware that EFCC was probing Yusuf.
Yusuf, who was suspended by Minister of Health Prof. Isaac Adewole on July 6, 2017 over allegations of fraud but was reinstated on Tuesday via a presidential directive.
Mohammed said: “I am not aware that the EFCC is investigating the recently reinstated Executive Secretary of NHIS but if that is the case I don’t think his reinstatement is a bar to any investigation.”
“The fact that he has been reinstated does not mean that the EFCC will not continue with its investigation, that is what I said.” he added
Sirika said the Council approved the substitution of Messers Lufthansa consulting, a member of the consortium that will provide transaction advisory services for the establishment of Nigeria’s National carrier
He said: “Council considered and approved that substitution with another company AMG (Airline Management Group) with Avia Solutions GE to join the other members of the consortium to continue providing that the same cost of N341,200 million.
Dambazau said FEC approved the purchase of N483.21 million operational vehicles for the Nigeria Immigration Service (NIS).
He said “For the first category of procurement including five percent VAT is N14.490 million and second category which is 25 of them is N8.347 million. The total including painting in immigration colours N4.095 million, totaling N483.210 million.”


This post first appeared on Treasureweb, please read the originial post: here

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Citi Group, Standard Chartered, Stanbic IBTC, others to handle $2.5b Eurobond

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