There is every indication that the much awaited international investment drive by Nigeria, also known as Eurobond, will kick-off before the end of February 2017, according to feelers from the Minister of Finance, Mrs. Kemi Adeosun.
She told journalists on Wednesday that all things needed for the programme to kick start any time in the month had been put in place, including acceptance of the technical management team by the international community.
It would be recalled that one of the delays the programme suffered was the delay by government to appoint some professionals whom the buyers of the bond could trust, in line with international practices.
To carry all potential investors along, government in November 2016 announced that it had approved some local and foreign investment banks to act in the capacity of managers.
Among them are the Citigroup, Standard Chartered Bank and Stanbic IBTC Bank as the managers of deals, while a US investment outfit and one from Britain were to serve as the receivers of the money at the opening of the bond sale.
The sale, which started with a road show in August 2016, was earlier planned to take off in January 2017, but officials blamed some unforeseen development for the postponement to February.
However, most of the investors targeted, reportedly said that they wanted Nigeria to give assurance that the funds would be strictly used for capital projects, which will see their purchase of the bond be regarded as equity holdings in its major public investments.
Read Also: Med-View Airlines berths at Stock Exchange
“Bonds are actually tagged with investment portfolio, such that failure to redeem them at maturity can see buyers of the bond take over ownership of the project on which the money is invested on, “ said Dr. Solomon Emezon, a senior lecturer at the University of Lagos Business Administration Department.
He said the announcement on Wednesday by the Finance Minister, Kemi Adeosun, that the appointment of the managers of the bond had been approved by President Muhmmadu Buhari is coming rather too late.
“It is part of the need to find money to make up for shortfall in the 2016 budget, knowing that revenues from oil have gone down due to low global prices and militant attacks in the Niger Delta,” an official of Debt Management Office said.
He said 60 percent success was being expected from the pricing and issuance of the bond programme.
RipplesNigeria ….without borders, without fears
- FRANCE: Knifeman fatally stabs three, injures several worshipers in church - October 29, 2020
- We must avoid second wave of COVID-19, our economy too fragile for another lockdown —Buhari - October 29, 2020
- LATEST TECH NEWS: CcHub acquires Kenya’s eLimu as education arm. 2 other things and a trivia you need to know today, October 29, 2020 - October 29, 2020