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SUSPENSION OF APRIL 2020 FGN SAVINGS BOND OFFER
His Excellency, President Muhammadu Buhari, GCFR, during a nation-wide broadcast on the Coronavirus (COVID-19) yesterday announced restrictions of movement in the Federal Capital Territory (FCT), Lagos and Ogun States. The restriction of movement was based on the need to keep the populace safe and contain the spread of the disease.
As a result of this development, the Debt Management Office (DMO) wishes to inform the general public that the FGN Savings Bond Offer for the month of April 2020, which was scheduled for April 6 – 10, 2020 has been suspended. The DMO wishes to assure the general public that the FGN Savings Bond Offers will resume when the conditions change.
It should be noted that the suspension of the April 2020 Offer will not affect Coupon Payments due to investors for already issued FGN Securities as arrangements have been made to ensure that all Coupon Payments for and redemptions of FGN Securities are made as and when due to investors’ designated accounts.
We wish to use this opportunity to call on the general public to adhere strictly to Mr President’s directives and cooperate with relevant Government Agencies that are working assiduously to contain the spread of the Covid-19.
DEBT MANAGEMENT OFFICE
NDIC Building (First Floor),
Plot 447/448 Constitution Avenue,
Central Business District,
Tel: +234 - 8110000881-3
March 30, 2020
February 18, 2020
Nigeria: Planned External Capital Raising of USD3.30 Billion
In furtherance of the Government’s commitment to develop infrastructure, the proceeds of the USD2.786 billion will be used to finance Capital Projects in priority sectors of the economy that are included in the 2020 Appropriation Act. The projects include those in power, transport, works and housing, aviation, health, education, agriculture and rural development.
Mindful of the need to moderate Debt Service Cost, the plan for the raising of the USD2.780 billion capital is to first maximize financing from relatively cheaper concessional and semi-concessional external sources where available, and the balance, if any, from the International Capital Market (ICM) through the Issuance of Eurobonds.
In addition to the USD2.780 billion for the Budget, Nigeria has a USD500 million Eurobond which will mature on January 28, 2021 (6.75% USD500 million 2021). Given that the Eurobond will mature early in the year 2021, the plan is to refinance it through the issuance of a Eurobond in 2020. Thus, the new external capital raising for the year 2020 to part finance the 2020 Budget Deficit and refinance the Eurobond maturing in January 2021 is USD3.3 billion.
Whilst the approval process for the proposed USD3.3 billion external capital raising is expected to be completed soon, Transaction Advisers for a potential Eurobond Issuance will be through Open Competitive Bidding process.
February 13, 2020