FG plans $1.7bn Eurobonds to support economic reforms – Wale Edun

Wale Edun, minister of finance, has announced plans for the federal government to issue $1.7 billion Eurobond as part of an external borrowing plan to strengthen the country’s finances and support economic reforms.

He disclosed this to State House correspondents on Thursday after the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu at the Presidential Villa.

He said, “The first objective is to complete the federal government’s external borrowing programme with the approval of the $2.2 billion financing package, which will include access to the international capital market through a combination of Eurobonds and Sukuk bonds—approximately $1.7 billion from the Eurobond offer and $500 million from Sukuk financing.”

According to him, the financing package will be raised through a combination of Eurobonds and Sukuk bonds, with approximately $1.7 billion expected to come from the Eurobond offer and $500 million from Sukuk financing.

He said the move was aimed at completing the federal government’s borrowing programme and will proceed once the National Assembly reviews and approves the plan.

Nigeria last explored the Eurobond market two years ago. Many analysts had expected an issuance earlier this year but the plan did not happen.

Thanks to the two consecutive interest rate cuts to 4.5- 4.75 percent in the United States, Nigeria has the favourable conditions it has craved.

Edun said the borrowing will take place within the 2024 fiscal year, with the final structure of the funding to be determined by market conditions and the recommendations of transaction advisers.