FG to issue $1bn Eurobond for $3bn World Bank, AfDB loan

The Minister of Finance, Mrs Kemi Adeosun, Tuesday, in London, said the federal government would issue $1 billion Eurobond in the third quarter of 2016 for the purpose of securing $3 billion loan from the World Bank and African Development Bank

Adeosun who stated this while addressing a meeting of international investors in London, said Nigeria might issue a $1 billion Eurobond in the third quarter and that it was close to securing $3 billion of funding from the World Bank and African Development Bank.

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According to Kevin Daly, a money manager at Aberdeen Asset Management Plc, who attended the talks, Adeosun disclosed that the Nigerian government was committed to a budget deficit of not more than N2.2 trillion ($11.1 billion), or 2.1 percent of Gross Domestic Product, GDP.

It would be recalled that Nigeria has sold dollar bonds twice, the last time being in mid-2013, when it raised $1 billion of five- and 10-year debt.

The government has said it would fund the fiscal gap with about $10 billion of debt, half of it in foreign currencies.

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