Nigerian govt approves JP Morgan, Citigroup, Standard Chartered, others as transaction advisers for $6.2bn Eurobond issuance

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L–R: Mr. Bola Adeeko, Divisional Head, Shared Services, The Nigerian Stock Exchange; Mr. Jude Chiemeka, Divisional Head, Trading Business, The Nigerian Stock Exchange (NSE); Leenart Sjoerd, Global Head of Corporate Bank & Head, CEEMEA, JP Morgan ; Dapo Olagunju, Managing Director & Head for West Africa , JP Morgan; Paul Van Zijl, Executive Director, JP Morgan; Oluwatoyin Alake, Head, Secondary Market, The Nigerian Stock Exchange; Olufemi Balogun, Head, Market Services, The Nigerian Stock Exchange during the Closing Gong Ceremony in commemoration of the collaboration with the NSE to facilitate in-depth knowledge gap building on Derivatives Market at the NSE on Friday.

Nigeria’s federal government, says it has appointed Transaction Advisers for a $6.2 billion Eurobond Issuance set for part-funding of its estimated N5.2 trillion deficit in the 2021 Budget.

The Debt management Office (DMO), which said Federal Executive Council (FEC) approved the advisory services during its meeting on Wednesday.

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According to it, the advisers are: JP Morgan, Citigroup Global Markets Limited, Standard Chartered Bank and Goldman Sachs would act as International Bookrunners/Joint Lead Managers; while Chapel Hill Denham Advisory Services Ltd would act as Nigerian Bookrunner.

FSDH Merchant Bank Ltd was named Financial Adviser; White & Case LLP as International Legal Adviser ; and Banwo & Ighodalo, as Nigerian Legal Adviser.

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The DMO said that the Transaction Advisers emerged from an open competitive bidding process as outlined in the Public Procurement Act, 2007 (as amended).

It said that 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 above were selected.

With the approval of the Transaction Advisers, the DMO said it would now accelerate activities towards the Issuance of the Eurobonds.

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It explained, “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.

“Since the Eurobonds are being issued to part finance the 2021 Budget Deficit, the proceeds will be used to fund various projects in the Budget. In addition, the proceeds will result in an inflow of foreign exchange which in turn, will increase Nigeria’s External Reserves and support the Naira Exchange Rate

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