DMO meets with Executives of The National Pension Commission (PENCOM)

Thursday, 02 December 2021 12:08

As part of engagement with its stakeholders, the Director-General, Debt Management Office (DMO), Patience Oniha, led a team of DMO executives to meet with top officials of PENCOM on December 1, 2021.

The meeting deliberated extensively on recent development in and on the plans of the two (2) institutions and concluded on areas of co-operation.

The meeting was attended by the Commissioner Inspectorate for PENCOM, Mr. Clement Oyedele Akintola; the Commissioner Administration for PENCOM, Dr. Umar Farouk Aminu; the Commissioner Technical for PENCOM, Anyim C. Nyerere; and other senior officials of PENCOM and the DMO.

DMO organizes Workshop for its Oversight Committee at the National Assembly

Thursday, 02 December 2021 12:02

The DG DMO, Patience Oniha, officially launched the Workshop on Executive Leadership for the Senate Committee on Local and Foreign Debts and the House Committee on Aids, Loans and Debt Management at the Zuma Resort, Niger State, on November 29, 2021.

The Workshop was organized by the DMO to interact with members of its oversight committees in order to promote understanding and mutual cooperation for the activities of the DMO.

The Workshop was attended by Sen. Engr. Clifford A. Ordia, Chairman, Senate C'ttee on Local & Foreign Debts; Sen. Muhammadu E. Bima, Vice Chair, Senate C'ttee on Local & Foreign Debts; Hon. Chris E. Azubogu, Deputy Chairman, House C'ttee on Aids, Loans and Debt Management as well as other notable legislators of the National Assembly.

Press Release: Towards Financing Infrastructure, Debt Management Office to Issue Another Sovereign Sukuk

Tuesday, 02 November 2021 11:49

PRESS RELEASE

Towards Financing Infrastructure: Debt Management Office to Issue Another Sovereign Sukuk

 

The Debt Management Office (DMO) is set to issue another Sovereign Sukuk this year for an expected amount of N200 - N250 billion to finance critical road projects across the country.

The DMO commenced the issuance of Sukuk in September 2017 as a strategic initiative to support the development of infrastructure, promote financial inclusion and deepen the domestic securities market. Subsequent to the debut Sovereign Sukuk in 2017 in which N100 billion was raised to finance the rehabilitation and construction of twenty-five (25) road projects across the six (6) geopolitical zones, the DMO issued a Sukuk for N100 billion in 2018 and another for N162.557 billion in 2020. The proceeds of these two (2) Sukuk issuances were also deployed to twenty-eight (28) and forty-four (44) road projects, also in the six (6) geopolitical zones. In summary, a total of N362.577 billion Sovereign Sukuk was issued between September 2017 and June 2021.

Since the debut Sovereign Sukuk in September 2017 whose benefit in terms of improved road infrastructure within and outside cities in Nigeria is clearly visible, the Sukuk has been commended as a viable instrument for financing infrastructure. The use of Sukuk, has enabled timely completion of the designated projects whilst also delivering the multiplier effects associated with construction of capital projects such as roads.

The DMO has already appointed Transaction Parties through the Open Competitive Bidding Process for the issuance of this fourth Sovereign Sukuk. The Transaction Parties and their respective roles are stated below:

                                        a. Issuing Houses     -      Stanbic IBTC Capital Limited, Greenwich Merchant Bank Limited

                                                                 and Vetiva Capital Management Limited.

                                        b. Financial Adviser -       BURAQ Capital Limited.

                                        c. Trustees       -             FBNQuest Trustees Limited and APEL Capital & Trust Limited

                                       d. Legal Advisers       -     Abdulai, Taiwo & Co. Solicitors and Tsedaqah Attorneys

From enquiries received from the media and investors, the DMO expects a high subscription level for the Sukuk when the Offer opens.

DEBT MANAGEMENT OFFICE

The Presidency

NDIC Building (First Floor),

Plot 447/448 Constitution Avenue,

Central Business District,

P.M.B. 532, Garki, Abuja

Tel: +234 - 8110000881-3

Website: http://www.dmo.gov.ng,

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

                                                                                                                                                                       November 01, 2021

Press Release: Nigeria Raises USD 4 Billion through Eurobonds

Tuesday, 21 September 2021 20:01

The long tenors of the Eurobonds and the spread across different maturities are well aligned with Nigeria’s Debt Management Strategy, 2020 – 2023.

Since the Eurobonds were issued as part of the New External Borrowing in the 2021 Appropriation Act, the raising of USD4 billion through Eurobonds provides a significant amount of funds to finance projects in the Act, thus contributing to the implementation of the 2021 Appropriation Act.

DEBT MANAGEMENT OFFICE

The Presidency

NDIC Building (First Floor),

Plot 447/448 Constitution Avenue,

Central Business District,

P.M.B. 532, Garki, Abuja

Tel: +234 - 8110000881-3

Website: http://www.dmo.gov.ng,

Press Release: Nigeria Back at International Capital Market with Eurobond Offer

Thursday, 16 September 2021 14:30

 

PRESS RELEASE

Nigeria Back at International Capital Market with Eurobond Offer

The Federal Government of Nigeria has announced plans for a Eurobond issuance in the International Capital Market (ICM). The last time Nigeria accessed the ICM was November 2018. Virtual meetings with investors have been scheduled for September 17 and September 20, 2021. In order to avail local investors, the opportunity to invest in the Eurobonds, meetings will also be held with local investors. This is the first time local investors will be included in the Roadshows, and this is one of the reasons why a Nigerian Bookrunner (Chapel Hill Denham Advisory Services Ltd) was appointed as one of the Transaction Advisers.

Through the Eurobond issuance, Nigeria is expected to raise up to USD$3 billion but no more than USD$6.2 billion. The issuance for which all statutory approvals have been received, is for the purpose of implementing the New External Borrowing in the 2021 Appropriation Act. Proceeds are for the financing of various projects in the Act.

In addition to providing funding to part-finance the deficit in the 2021 Appropriation Act, the issuance of Eurobonds by Nigeria benefits the country in many other strategic ways; amongst which are:

  1. It is an inflow of foreign exchange, leading to an increase in External Reserves. External Reserves help support the Naira Exchange Rate, and Nigeria’s sovereign rating.
  2. When Nigeria raises funds externally, through Eurobonds, it frees up space in the domestic market for private sector and sub-national borrowers. In effect, it helps the sovereign not to crowd out other borrowers in the domestic market.
  3. The issuance of Eurobonds by Nigeria has opened up opportunities for Nigeria’s corporate sector notably banks, to issue Eurobonds to raise capital in the ICM. By so doing, their capital base has been strengthened to provide banking services whilst also meeting regulatory requirements. Nigeria has a sovereign yield curve in the ICM, extending up to 30 years.
  4. The local listing of Nigeria’s Eurobonds on the Nigerian Exchange Ltd. and the FMDQ Securities Exchange Ltd., have increased the range of products on these two (2) exchanges and their respective market capitalization.

Overall, Eurobond issuances by Nigeria and the investor meetings that precede the pricing, have provided a strong global platform for Nigeria to tell its own story and opportunities available in Nigeria for investors.

The Transaction Advisers appointed by Nigeria for the issuance are:

  1. International Bookrunners/   -     JP Morgan, Citigroup Global Markets Limited,

  1. Joint Lead Managers                    Standard Chartered Bank and Goldman Sachs.

  1. Nigerian Bookrunner             -     Chapel Hill Denham Advisory Services Ltd
  2. Financial Adviser                  -      FSDH Merchant Bank Ltd                    
  3. International Legal Adviser    -     White & Case LLP  

  1. Nigerian Legal Adviser             -   Banwo & Ighodalo

DEBT MANAGEMENT OFFICE

The Presidency

NDIC Building (First Floor),

Plot 447/448 Constitution Avenue,

Central Business District,

P.M.B. 532, Garki, Abuja

Tel: +234 - 8110000881-3

Website: http://www.dmo.gov.ng,

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

September 16, 2021