8 February 2018

Nigeria Re-Appoints Consortium of Banks to Implement $2.5 Billion Eurobond

The federal government has announced the re-appointment of a consortium of banks including Citi Group, Standard Chartered, Stanbic IBTC, Whitten-Case and African Practice to implement its $2.5 billion Eurobond scheme.

The Minister of Finance, Kemi Adeosun, made this known to State House correspondents after the meeting of the Federal Executive Council, FEC, in Abuja on Wednesday.

She explained that the $2.5 billion was not a new borrowing but Nigerian Treasury bills that would mature and would be refinanced into dollars, adding that it also fell under the external borrowing scheme for debt refinancing.

She revealed that potential savings on the proposed $2.5 billion refinancing was estimated at N64 billion per annum

"The estimated proceeds of the N762.5 billion will be used to redeem NTBs.

"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," she said.

The minister said the use of the proceeds of the $500 million issued in November 2017, which produced about N162.50 billion were used to redeem Nigerian Treasury Bills, NTBs, which matured in December 2017.

"The immediate impact was a significant drop in the Bid Rates at the Auctions of both NTBs and Federal Government of Nigeria Bonds in Dec. 2017 and Jan. 2018," she added.

She disclosed that the NTBs dropped from about 16 per cent to 13 per cent, while the Bonds dropped from about 16 to 16.50 per cent to 13.50 per cent.

She maintained that this translated 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."

The Minister of Information, who fielded questions on the reinstated Executive Secretary of National Health Insurance Scheme (NHIS), said he was not aware that the Executive Secretary was being investigated by the Economic and Financial Crimes Commission (EFCC).

He 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."

"I didn't say I'm not aware of his investigation, I said EFCC. I was precise I said I am not aware that the EFCC is investigating him and that if it is true, that the fact that he has been reinstated does not mean a stop to it. That is what I said.

"I am not saying I'm not aware that he was suspended or any investigation is going on.

"The fact that he has been reinstated does not mean that the EFCC will not continue with its investigation, that is what I said."

The Minister of Communications, Adebayo Shittu, also disclosed that federal government had ordered the importation of radio monitoring equipment to jam illegal and unauthorised broadcast in the country.

According to him, the equipment were to be installed in five locations, including Lagos, Ogoja, Azare.

While giving a rundown of projects being executed within his ministry, he said Galaxy Backbone Ltd, a firm contracted by the federal government, was also providing non-satellite communication services to Ministries, Department and Agencies (MDAs) across the country.



Sublime Soul Diva Who Demanded Respect, Which Will be Forever Given

It is no coincidence that two of Aretha Franklin’s celebrated contemporaries who travelled to Detroit to see the… Read more »

See What Everyone is Watching

Copyright © 2018 Premium Times. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.