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Nigeria to hold Investors call on Eurobond issuance today

THE Federal Government of Nigeria has announced global investors call ahead of the $3 billion Eurobond issuance scheduled for October 2021, the Debt Management Office (DMO) said in a statement.

Nigeria’s total public debt hits N35.47 trillion in the second quarter of 2021 amidst plant to borrow about N6 trillion to support fiscal spending plan for 2021. Nigeria’s spending plan deficit was however expanded due to the supplementary budget passed by the lawmakers.

By the year end, estimates show the Nigeria debt exposure would cross N40 trillion as debt management office document reviewed by MarketForces Africa shows no principal maturity in the year.

It could be recalled that International Monetary Fund, IMF, has also released about $3.5 billion to the Nigerian government, which is expected to take external reserves to the $36 billion marks as foreign investors maintain distance with Africa’s largest economy.

Recall Nigeria picked JPMorgan, Citigroup, Standard Chartered and Goldman Sachs as international Bookrunners and local firm Chapel Hill Denham on the forthcoming Eurobond issue.

DMO said in a statement issued that the investor call will take place on Friday, adding that the announcement does not constitute an invitation or offer to underwrite.

Also, the investors, it said do not constitute subscribe for or otherwise acquire or dispose of any securities nor is it intended to be an inducement to engage in investment activity for the purpose of Section 21 of the Financial Services and Markets Act 2000 of the United Kingdom.

The debt office added that the Federal Republic of Nigeria has prepared an offering circular dated 16 September 2021 in connection with the proposed offering of notes referred to above.

“Investors should not subscribe for any notes except on the basis of information contained in the offering circular”, DMO added.

“FG, rated B2 (negative) by Moody’s investors’ services B- (Stable) by S&P, and B (Stable) by Fitch Ratings, mandated Citi, Goldman Sachs International, J.P Morgan and Standard Chartered as international bookrunners and Chapel Hill Denham as Nigeria Bookrunners to arrange a global investors call tomorrow in addition to series of fixed income investors call”, DMO said.

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