The Federal
Government has approved plans for external loans from the World Bank, China and
Japan.
It specifically
said Nigeria would take loans from institutions such as the World Bank, African
Development Bank, Japan International Cooperation Agency, and Export-Import
Bank of China, Bloomberg reported on Thursday.
This will include
low-cost and long-term loans with interest rates of 1.25 per cent and maturity
of 20 years, according to comments posted on its Twitter.
The Federal
Government said that details of a proposed Eurobond due later this year would
be announced “in due course.”
According to the
Presidency, the government is now waiting for lawmakers to approve the plans.
President Muhammadu
Buhari had announced a N6.1tn ($19.4bn) spending plan aimed at stimulating the
economy this year. The economy contracted in the first two quarters as oil
revenue plunged.
Buhari said he
expected the Federal Government to raise about $5bn from the Eurobond market
and multilateral and bilateral lenders.
The Debt Management
Office had last month asked banks to place bids by September 19 if they wished
to manage a $1bn Eurobond sale.
The Minister of
Finance, Mrs. Kemi Adeosun, told bond investors in London in June that Nigeria
was close to securing about $3bn of funding from the World Bank and African
Development Bank.
Nigeria had issued
dollar bonds twice, the last time in 2013. Yields on its $500m of securities
due in July 2023 fell 11 basis points to 6.24 per cent, their lowest level
since June 2015 and down more than 300 basis points since hitting a record 9.4
per cent on January 18, Bloomberg reported.
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