Abdulwahab Isa 
The Federal Government on Wednesday activated plans to raise N2.343 trillion (about$6.2 billion) to finance part of 2021 appropriation deficit by hiring transaction advisers for Eurobond issuance. The Federal Executive Council (FEC) at a session on Wednesday endorsed institutions that will advise the government on Eurobond issuance, the Debt Management Office ( DMO) said in a statement.
The approved institutions are International Bookrunners/-JP Morgan, Citigroup Global Markets Limited, Joint Lead Managers Standard Chartered Bank and Goldman Sach, Nigerian Book runner- Chapel Hill Denham Advisory Services Ltd, Financial Adviser – FSDH Merchant Bank Ltd ( d) International Legal Adviser-White & Case LLP and Nigerian Legal Adviser -Banwo & Ighodalo. DMO said selection of the institutions followed a thorough screening in an excercise in which 38 institutions responded to expression of interest. The excercise, it said, was conducted transparently in the open .
“The transaction advisers emerged from an open competitive bidding process as outlined in the Public Procurement Act, 2007 (as amended). “A total of 38 institutions responded to the Expression of Interest, and after rigorous evaluation to ascertain the technical capacities of the responders to execute the transaction, the eight institutions were selected. “With the approval of the advisers by FEC, the Debt Management Office (DMO) will now accelerate activities towards the Issuance of the Eurobonds,” DMO said.
It will be recalled that the resolutions of the Senate and the House of Representatives, in compliance with the Debt Management Office (Establishment, Etc.) Act, 2003 and Fiscal Responsibility Act, 2003, had earlier been secured. The Eurobonds to be issued are for the purpose of raising funds for the New External Borrowing of N2.343 trillion (about USD6.2 billion) provided in the 2021 Appropriation Act to part finance the deficit. “Whilst the government expects a successful outing, it will be mindful of costs and risks (in terms of tenor and pricing) in determining the amount of Eurobonds to issue,” debt agency clarified further. According to DMO, since Eurobonds are being issued to part finance the 2021budget deficit, the proceeds will be used to fund various projects in the budget
