Tuesday, May 22, 2018
Advertisement

DMO: New $2.5bn Eurobond will be used to refinance old debts

DMO: New $2.5bn Eurobond will be used to refinance old debts
February 08
21:47 2018
Advertisement

The Debt Management Office (DMO) says the proceeds from the planned $2.5 billion Eurobond will be used to refinance maturing domestic debt obligations of the federal government.

The government had proposed a $5.5 billion Eurobond auction although it only issued $3 billion in 2017.

In a statement sent to TheCable on Thursday, DMO said the proceeds will be converted to naira and that the issuance will not increase public debt stock.

“The purpose is to rebalance the federal government’s debt portfolio by increasing the external component while reducing the domestic component in line with Nigeria’s debt management strategy, which has a target of a 40:60 ratio for external to domestic debt from the current position of about 25:75, respectively,” the statement read.

“The proceeds of the planned USD2.50 billion will be converted to naira and be used to redeem relatively more expensive domestic debt. This is expected to save about N64 billion per annum in interest cost which will help to reduce the debt service/revenue ratio and free up the fiscal space for other priorities of government.”

In December 2017, the government redeemed matured treasury bills with proceeds from the $500 million Eurobond auction.

Patience Oniha, DMO DG, has also said the government is planning to issue more Sukuk and Eurobond in 2018.

RECEIVE ALERTS FROM THECABLE

BBM CHANNEL C0038F78B
WHATSAPP 08113975334
TWITTER @thecableng
Copyright 2018 TheCable. Permission to use quotations from this article is granted subject to appropriate credit being given to www.thecable.ng as the source.
Tags
Advertisement

Social Comments

0 Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Write a Comment

Your email address will not be published.
Required fields are marked *

*

Advertisement
Advertisement

Exchange Rates

May 22, 2018USDGBPEUR
INTERBANK360.45487.18428.32
LAGOS360495436
KANO360494435
PH361494430
ABUJA360495430
NOTE: The black market rates represent the most prevalent. They could be slightly higher or lower among different sellers.
Advertisement
Advertisement
Advertisement
Advertisement