4 weeks ago
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President Bola Tinubu has sent a petition to the House of Representatives, seeking support to entree outer superior of $2.347billion.
This comprised of caller outer borrowing of N1.843 trillion, astatine the fund speech complaint of $1.00/N1,500.00) successful the 2025 Appropriation Act for the part-financing of the fund shortage and refinancing of $1.118billion Eurobonds.
This is to beryllium accessed done immoderate of the pursuing option(s) successful the International Capital Market (ICM): Issuance of Eurobonds, Loan Syndications, Bridge Finance Facility from Bookrunners and Direct Borrowing from International Financial Institutions.
Tinubu, successful a missive to Speaker Abbas Tajudeen work astatine plenary connected Tuesday, besides sought the solution of the House to o.k. the contented of a stand-alone debut Sovereign Sukuk of up to $500m successful the ICM with oregon without recognition enhancement (Guarantee).
Explaining the implementation of caller outer borrowings successful the 2025 Appropriation Act, Tinubu said: “the House whitethorn privation to enactment that 2025 Appropriation Act provides for N9,276,348,934,935.79 arsenic New Borrowings to part-finance the 2025 Budget Deficit, of which #1,843,669,786,987.16 (equivalent of astir USD1,229,113,000.00 astatine the Budget Exchange Rate of USD1.00/N1,500.00).
“The House of Representatives is kindly invited to contented its Resolution allowing the Government to rise the magnitude done immoderate of the pursuing options: Issuance of Eurobonds, Bridge Finance Facility from Bookrunners, Loan Syndication and Direct Borrowing from International Financial Institutions.
“The House of Representatives whitethorn privation to enactment that Eurobonds of USD1,118,352,000.00 (7.625% US$1.118BN NOV 2025) issued successful the ICM connected November 21, 2018, with an archetypal tenor of 7 years, volition mature connected November 21, 2025.
“The program is to refinance the maturing Eurobonds done issuance of Eurobonds, Bridge Finance Facility from Bookrunners, Loan Syndication, oregon Direct Borrowing from International Financial Institutions, if indispensable to debar default.
“This is simply a modular signifier successful indebtedness superior markets, including the ICM. The connection is for the House of Representatives to contented its Resolution authorising the FGN to refinance the Eurobonds, accordingly.
“Based connected the presentations successful Paragraphs 2 and 3, the aggregate magnitude projected to beryllium raised successful the ICM either done Issuance of Eurobonds, Bridge Finance Facility from Bookrunners, Loan Syndication and Direct Borrowing from International Financial Institutions oregon operation of the options for which Resolution of the House of Representatives is being sought is USD2,347,465,000.00.
“Whilst exploring each the options, the program is to absorption connected the Issuance of Eurobonds, and we judge that Nigeria, being a regular issuer of Eurobonds successful the ICM could rise the projected amount, taxable to marketplace conditions. The House of Representatives whitethorn privation to enactment that due to the fact that Eurobonds Issuance is simply a market-based transaction, the presumption and conditions tin lone beryllium determined astatine the clip of the transactions, and they volition beryllium taxable to prevailing marketplace conditions.
“The Federal Ministry of Finance (FMF) and the Debt Management Office (DMO) volition enactment with the Transaction Advisers to unafraid the astir favourable presumption and conditions. The Indicative Terms and Conditions for Issuance of USD2.347 cardinal Eurobonds successful the ICM is attached arsenic Annexure 1. Meanwhile, it is expected that the pricing of the caller Eurobonds volition bespeak the Yields connected Nigeria’s Eurobonds trading successful the ICM astatine the clip of Issuance, portion Tenors volition beryllium guided by investors’ preferences, terms and the DMO’s liability absorption strategy.”
The missive further read: “The House of Representatives is invited to contented its Resolution authorising the Issuance of a stand-alone debut Sovereign Sukuk of up to USD500m successful the ICM based connected the pursuing reasons, amongst others:
“The FGN has recorded sizeable occurrence successful the Issuance of Sukuk successful the home superior marketplace for the improvement of captious infrastructure projects crossed the country. Between September 2017 and May 2025, the DMO has raised N1,392.557 trillion done Sukuk successful the home superior marketplace to money captious roadworthy infrastructure projects.
“There is the request to excavation resources from outer sources to complement home issuance to assistance span infrastructure backing gaps; and, it is imperative to unfastened caller sources of backing for the FGN, and thereby diversify capitalist base, arsenic good arsenic deepen the FGN Securities market.
“The connection is for the House of Representatives to o.k. the issuance of a stand-alone debut Sovereign Sukuk with oregon without recognition enhancement (Guarantee) from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a subordinate of the Islamic Development Bank (IsDB) Group.
“Based connected the foregoing, ...
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