Business

FG seeks rescue, set to raise $1bn in Eurobond

Published

8 years ago

September 16, 2016

Ripples Nigeria

FG seeks rescue, set to raise $1bn in Eurobond

The Federal Government has concluded plans to raise $1 billion on the Eurobond market.

The move by the Nigerian government is part of its plan to meet deficit in the 2016 budget.

This was disclosed by the Minister of Finance, Kemi Adeosun, at a press briefing in Abuja on Friday.

According to her, the government, had, earlier in the month, approved the plan to issue international debt for the first time since 2013, adding that the bonds are to go on sale in December.

Read also: Crude oil price falls as Nigeria, Libya return to market

Adeosun also disclosed that the proceeds from the bond sale will be channeled into financing capital projects.

“We are about to appoint our advisers. We are raising one billion dollars.

“I want to re-emphasise that we have a strategic plan that will take us out of the recession that we find ourselves in. We want to make sure that this recession is the shortest possible”, Adeosun said.

Aside the bond sale, the federal government also plan to obtain loans from the World Bank, the African Development Bank, China Exim Bank and the Japan International Cooperation Agency, with Adeosun saying the loans would be utilised for strategic sectors of the economy, especially power and agricultural sectors.

Adeosun also disclosed that the Federal government is planning to inject N350 billion into the economy, that will be directed towards capital expenditure projects.

According to her, government plans to borrow N1.8 trillion from the African Development Bank, China, Japan and World Bank with rates of 1.25 per cent and a 20-year maturity.

She added that the borrowed money will be used to fund an expected budget deficit of N2.2 trillion.

By Timothy Enietan-Matthews….

RipplesNigeria …without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now