Business Hilights

Tracking Nigeria's Headline Business News Online


S/African banks, consultant appointed transaction parties for FG’s $1bn Eurobond

Ad 2
Ad 3

Three South African banks doing business in Nigeria, Citigroup, Stanbic IBTC, and Standard Chartered, have been appointed transaction parties for $1bn Eurobond.

It would be recalled that yesterday, the Federal Executive Council (FEC) has approved a consortium of financial, legal and communications advisers for the issuance of the $1billion Eurobond in the first quarter of next year.

Though a number indigenous banks who spoke on the matter with our correspondent said it was unfair for a government that is campaigning for local content to always look another way when it comes to implementing local content, many of them said they were not disturbed as the government reserves the right to do its things its own way.

The Finance Minister, Mrs. Kemi Adeosun, who disclosed this in Abuja, while briefing journalists, gave the names of the transaction parties as Citigroup, Standard Chartered Bank, Stanbic IBTC Holdings Plc, White & Case LLP, Banwo & Ighodalo and Africa Practice Communications.

Among the team, only Banwo & Ighodalo is a Nigerian company in the deal.

Adeosun explained that the parties would run any Eurobond issue undertaken by the government over the next three years.

“We don’t have to keep on retendering, unless there is a major problem with any of them, they will be our transaction parties for the next three years,” she added.

Adeosun said government had obtained a certificate of no objection from the Bureau of Public Procurement (BPP) for the appointment of transaction advisers, after what she described as a “fully competitive open tender process”.

 “The $1 billion Eurobond programme is part of the funding for 2016 budget and we hope to be able to commence the process in January.

“We are confident that we will be able to complete the transaction expeditiously with significant interest.”

 “Nigeria’s paper is currently trading around the seven to eight per cent mark. We are expecting to get quite competitive pricing on the issuance programme which I said is to be used for the purpose of funding capital projects in the 2016 budget within the month of January.”


Business Hilights is an online news channel conceptualized and structured to report and track on a daily basis; latest developments in critical business sectors to serve as a one stop news gateway for governments, foreign and indigenous investors.