Presidency Seeks 500million Dollars Eurobond
By Andah John with agency report
Acting President Yemi Osinbajo has written to the Speaker of the House of Representatives, Yakubu Dogara, seeking approval for the issuance of 500 million dollars Eurobond to fund the 2016 budget deficit.
The letter, which was read by the Speaker during plenary, noted that the executive plans to issue the Eurobond in the international capital market between February and March 2017 in order to meet governments approved capital expenditure funding plan.
”Following the high oversubscription of USD one billion Eurobond issuance, we wish to take advantage of favourable market conditions to issue a Eurobond debt instrument of USD 5OO million.
“This will fund the implementation of the 2016 budget, which is ongoing.
“Given that the implementation of the 2016 budget is still ongoing, we plan to issue the Eurobond between February and March 2017, subject to market conditions.
“This is in order to meet the governments approved capital expenditure funding plan,’’ the letter stated.
It said the 2016 Appropriation Act provided for a deficit of N2, 204.742 billion and new borrowings of N1, 818. 675 billion respectively.
It also said the Act also provided for domestic borrowing of N1, 182. 798 billion and external borrowing of N635. 877 billion.
“While the approved domestic borrowing had been fully incurred, the N635.877 billion external borrowing has not been fully accessed.
“The external borrowing incurred to date consists of USD 600 million from the African Development Bank and USD 1 billion Eurobond from the international capital market only.
“Thus, based on the 2016 appropriation and applying the average exchange rate, there is headroom to access further international funds,’’ the letter read in part.