FG Announces Plan To Float $2.5bn Eurobond For Capital Project
The Debt Management Office (DMO) on Thursday said the Federal Government would float a Eurobond to raise 2.5 billion dollars before the end of 2017.
The DMO Director-General, Patience Oniha, made this known at the 2017 Nigerian Debt Capital Markets Conference and Awards, organised by the FMDQ OTC Securities Exchange in Lagos.
Mrs. Oniha said that the borrowing would enable the country to bridge the gap in the 2017 budget currently facing liquidity problem to finance some capital projects.
She said that the proposed Eurobond issuance would complement the 1.5 billion dollars raised from the international market in March 2017.
Mrs. Oniha said the nation’s Treasury Bills portfolio presently stood at N3.7 trillion, adding that DMO planned to refinance it with foreign borrowing to reduce pressure on the domestic market.
“The debt ratio is not tangible and adequate components of borrowing, because it is not going into funding others than capital investment,” she said.
“Let us channel new borrowings into capital investment instead of consumption.”