Nigeria is hoping to take advantage of the successful $1b Eurobond sale by borrowing another $500 million. This was confirmed after the Acting President Professor Yemi Osinbajo sent the National Assembly a request to approve the new loan. The money will also be used to fund part of the proposed 2017 budget. Here is an excerpt of the statement:
“Following the high over subscription of the recent $1 billion Eurobond issuance, we wish to take advantage of favourable market conditions to issue a Eurobond Debt Instrument of $500 million to fund the implementation of the 2016 budget,”
The new Bond issue is expected to replicare the success of the $1 billion Eurobond secured last two weeks which was over subscribed 4 folds. Minister of Finance, Kemi Adeosun on CNBC on Tuesday, confirmed Nigeria had no plans to secure loans from the IMF but will instead explore options such as the Eurobonds, Diaspora bonds and infrastructure loans from the Chinese.
Nigeria’s 2017 budget is put at about N7 trillion and hopes to borrow about N2.2 trillion to plug the deficit.
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