Amidst opposition that the country was spending so much overseas in search of investor, the Federal Government, on Tuesday, hinted it was planning one week of road shows to British, Germany and the United States , with the book-runners for its $1bn Eurobond, with a view to issuing same later this year.
Programme details made available to CEOAFRICA News by the organizers showed that the Nigerian road show will begin in London on Wednesday, June 19, before berthing in Germany on June 20. It would then move from the two leading European commercial centres to New York and Boston, rounding off in Los Angeles on June 26.
According to a timetable for the trip released to Reuters news agency by a banking source close to the deal, Nigerian contingents to the meetings will be led by Nigeria’s Finance Minister, and Coordinating Minister for the Economy, Dr. (Mrs) Ngozi Okonjo-Iweala, and other senior government officials from the Debt Management Office (DMO).
The government which only last month appointed Deutsche Bank and Citigroup to lead manage the bond, had two years ago, issued its debut $500 million 10 years Eurobond, which was 2-1/2 times oversubscribed, with investors spanning 18 countries from Europe, the United States, Asia and Africa. Last month, Director General of the Debt Management Office, Dr. Abraham Nwankwo, hinted the country will increase the amount it borrows overseas to around 40 per cent of all debt over the next three to five years, from 12 percent currently, to lower its funding costs.
The DMO boss had said it wanted to raise the money before the end of September to help finance Nigeria’s power reforms which is currently at very critical stage. Nigeria, Africa’s top oil producer, has a credit rating of BB with a stable outlook from both Fitch and Standard & Poors.
Nwankwo had said last month that the Federal Government planned to unveil the Eurobond before the end of September to fund its power and gas sector reforms.
The Minister of Finance Dr. Ngozi Okonjo-Iweala had last year sought legislative backing from the House of Representatives for the floating of $1bn bond million Diaspora bond.
