External reserve – Precise Post

FG Hires JP Morgan, Others As It Prepares to Borrow Fresh $6.2bn

August 5, 2021August 5, 2021 - by Precise Post - Leave a Comment

Ahead of its plan to borrow a staggering $6.2 billion, the Federal Government of Nigeria has hired JP Morgan and other firms as advisers to facilitate the issuance of Eurobonds in the international capital market. This was contained in a press statement titled ‘Towards financing the 2021 Appropriation Act – FGN appoints transaction advisers for a Eurobond issuance’, which was made available to our correspondent in Abuja on Wednesday by Debt Management Office’s Head of Media, Chinenye Onu. The statement read, “Activities by Nigeria towards the issuance of Eurobonds in the International Capital Market inched forward today with the appointment of Transaction Advisers by the Federal Government. “Typical of Eurobond issuance, transaction advisers of various categories are required to work with an issuer, in this case Nigeria, to ensure the success of the Transaction.” The DMO said certain institutions were approved by the Federal Executive Council at its meeting on Wednesday to advise on the Eurobond issuance. The institutions include International Bookrunner (JP Morgan, Citigroup Global Markets Limited), Joint Lead Managers (Standard Chartered Bank and Goldman Sachs), Nigerian Bookrunner (Chapel …

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$6.2bn Fresh Borrowing: FG Hires JP Morgan, Others As Financial Adviser

August 5, 2021August 5, 2021 - by Editor - Leave a Comment

By Ogechi Okorie Abuja – To facilitate the issuance of Eurobonds in the international capital market, the Federal Government of Nigeria has appointed JP Morgan, Citigroup Global Markets Limited and some others as transaction advisers. This was contained in a press statement titled ‘Towards financing the 2021 Appropriation Act – FGN appoints transaction advisers for a Eurobond issuance’, which was made available to our correspondent in Abuja on Wednesday by Debt Management Office’s Head of Media, Chinenye Onu. The statement read, “Activities by Nigeria towards the issuance of Eurobonds in the International Capital Market inched forward today with the appointment of Transaction Advisers by the Federal Government. “Typical of Eurobond issuance, transaction advisers of various categories are required to work with an issuer, in this case Nigeria, to ensure the success of the Transaction.” The DMO said certain institutions were approved by the Federal Executive Council at its meeting on Wednesday to advise on the Eurobond issuance. The institutions include International Bookrunner (JP Morgan, Citigroup Global Markets Limited), Joint Lead Managers (Standard Chartered Bank and Goldman Sachs), Nigerian Bookrunner (Chapel …

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Buhari wants N’Assembly’s nod to raise N2.343trn to finance 2021 budget deficit

May 18, 2021May 18, 2021 - by Editor - Leave a Comment

By Ogechi Okorie Abuja (Precise Post) – Senate on Tuesday received a request from President Muhammadu Buhari to raise the sum of N2,343,387,942,848 from multilateral and bilateral lenders, as well as the International Capital Market (ICM) through the issuance of Eurobonds. The amount which is equivalent to USD$6,183,081,643.40 at the Budget Exchange Rate of USD$1/N379, is captured as New External Borrowing in the 2021 Appropriation Act (Item No.330), and meant to part-finance this year’s Budget Deficit of N5.602 trillion. The request was contained in a letter addressed to the Senate President, Ahmad Lawan, and read during plenary. According to the President, the request was made in line with the provisions of Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003. He disclosed that Nigeria may be able to raise USD$3 billion or more, in a combination of tenors between 5 – 30 years. Buhari explained that the Federal Government’s decision to raise the sum from the International Capital Market was due to the recent monetary policy stance that provides for very low interest rates and ease of …

Business

CBN injects $1.47bn into forex market in 1 month

April 28, 2021April 28, 2021 - by Precise Post - Leave a Comment

The Central Bank of Nigeria injected $1.47bn into the foreign exchange segment of the market as part of its efforts to stabilise the naira in January. According to figures from the CBN’s January report on its foreign exchange market developments, this was a decrease of 47.4 per cent and 64.0 per cent from the level in the preceding month and corresponding period of 2020. Part of the report read, “Total foreign exchange sales to authorised dealers by the bank was $1.47bn in January 2021, a decrease of 47.4 per cent and 64.0 per cent from the level in the preceding month and corresponding period of 2020, respectively. “A disaggregation showed that foreign exchange sales at the I&E, SMIS, SME, and interbank fell by 79.9 per cent, 38.3 per cent, 19.8 per cent, and 37.3 per cent to $0.22bn, $0.48bn, $0.10bn, and $0.04bn respectively. “Similarly, foreign exchange cash sales to BDC operators and matured swap transactions fell by 19.3 per cent and 48.7 per cent, compared with its level in the preceding month to $0.42bn and $0.12bn respectively in the review …

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Nigeria’s External Reserve Increases With $3.15bn in May From $33.42 billion as of April

June 5, 2020June 5, 2020 - by Editor - Leave a Comment

Abuja (Precise Post) – Nigeria’s external reserves now stand at $36.57 billion, representing increase of $3.15bn from the $33.42 billion as of April 29, 2020. This development has given the apex bank of Nigeria the fire power to defend the Naira exchange rate as promised by Central Bank Governor Mr. Godwin Emefiele. The rise in the nation’s reserve can be attributed to rising oil prices and facility granted to the country by International Monetary Fund to fight COVID-19. The reserve position will further improve when other expected facilities comes in. The recent jump in crude oil prices to about $40 have helped Nigeria’s foreign reserve to rise at a steady pace. According to the latest data obtained from the Central Bank of Nigeria (CBN) website, Nigeria’s foreign exchange reserves now stand at $36.57 billion, having increased from $33.42 billion as of April 29, 2020. This shows a gain of $3.15 billion dollars. This feat recorded above (rising FX reserves) has given the CBN Governor, Godwin Emefiele, more ammunition to defend the naira. Weeks ago, the Naira had traded as high …