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The Debt Management Office (DMO), a government agency established to centrally coordinate the management of Nigeria’s debt has won several recognitions at the Prestigious EMEA Finance awards.
The government agency won in four categories which include the Best Sovereign Bond in Africa for Nigeria’s US$3bn Dual-Tranche 10 and 30 year Eurobonds issued in November 2017, Most Innovative Bond for Nigeria’s US$300mn Diaspora Bond issued in June 2017, Best Naira Bond for Nigeria’s N100billion 7 year Inaugural Sukuk issued in September 2017 and Global Capital Award for Best African Borrower.
The Federal Government through the ministry of finance successfully sold $2.5 billion of Eurobonds to compliment the $3 billion it raised in November last year, as part of its on-going debt restructuring strategy aimed at increasing external debts from 23 percent to 60 percent, and cutting down on domestic debts from 77 percent to 40 percent.
Patience Oniha, director general of Debt Management Office (DMO), said that “for government to plan and execute its plan enunciated by the Economic and Recovery Growth Plan (ERGP), Medium Term Economic Framework (MTEF) and other associated fiscal strategies, it has to spend and borrowing is a mechanism to do that.”
As at last year December, Nigeria’s total public debt stock is N21.725 trillion, according to DMO.
Here are more information on the categories for which the DMO won:
Nigeria’s US$300 mn Diaspora Bond issued in June 2017 (Most innovative bond for Nigeria) – The country sold a US$300mn diaspora bond in late June, targeting wealthy Nigerians living abroad, which also proved to be a success with investors as the transaction was 130 percent oversubscribed.
Nigeria’s N100 billion 7 year Inaugural Sukuk issued in September 2017(Best Naira Bond for Nigeria) – In December of last year, the ministry of finance tweeted that the N100billion Sukuk bond was released in October .The Sukuk bond which the Federal Government acquired recently then will be used to finance projects on 25 major highways across the country.
“Twenty five major highways will be funded under the N100b SUKUK facility. Each geo-political zone will benefit by an equal amount of N16.67b,” President Muhammed Buhari said in his New Year speech to the country.
* Nigeria’s US$3bn Dual-Tranche 10 and 30 year Eurobonds issued in November 2017(Best Sovereign Bond in Africa) – In November last year , the government embarked on a road show announced the floating of a $3 billion Eurobond, offering an aggregate principal amount of dual series notes under its US$4.5 billion Global Medium Term Note programme (increased from US$1.5 billion).
“The 10-year series would bear interest at a rate of 6.5 per cent, while the 30-year series will bear interest at a rate of 7.6 per cent, which will be repayable with a bullet repayment of the principal on maturity,” Finance Minister Kemi Adeosun said.
The offering attracted significant interests from leading global institutional investors. The successful pricing follows issuances in 2011, 2013 (two series) and earlier in 2017.
“Successfully extending out debt profile in the international market to 30 years is a key element of that strategy as it establishes a basis for the longer term financing required for transformational infrastructure investment,” Adeosun further added.
The EMEA Finance magazine is the complete information source for the finance industry in the EMEA region and is the only periodical dedicated exclusively to report financial events, happenings and triumphs initiated and influenced by the international financial industry.
The key financial personalities who make things happen are regularly profiled, creating a platform for readers to gain a more complete and thorough understanding of their peers and industry news.
According to EMEA, Nigeria has become the first sovereign in Africa to issue a green bond, and hopes are growing that other countries will dip their toe into the region’s nascent market.
Nigeria, rated B2/B/B+, printed its debut NGN10.69bn ($29.65m) 13.48% five-year bullet bond at the end of December 2017, with the trade settling on 22 December. The borrower went on an investor roadshow in Abuja and Lagos on 14 and 15 December.
BUNMI BAILEY
