Nigeria Confirms Plans to Borrow $2.7bn from Foreign Market in 2019

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The Federal Government will borrow $2.7bn (N824.82bn)from foreign sources in 2019, the Debt Management Office has said, dismissing reports earlier this week that is wasn’t going to offer any Eurobonds in 2019.

In a statement made available to our correspondent in Abuja on Wednesday, the DMO said that the first priority would be to borrow from multilateral and bilateral sources. The balance, it said, would be borrowed from commercial sources such as Eurobonds.

The DMO issued the statement to clarify a report which said it had ruled out the issuance of Eurobonds in 2019.

The DMO said the plan to borrow $2.7bn from external sources was contained in the 2019 Appropriation Bill, which was recently signed into law by President Muhammadu Buhari.

The statement said in part, “For the records, the 2019 Appropriation Act provides for new external borrowing of N824.82bn (the equivalent of $2.7bn at USD/N305).

“Consistent with the Debt Management Strategy of reducing debt service cost, the plan for raising the new external borrowing is to first access cheaper funding from multilateral and bilateral lenders as may be available.

“Thereafter, any balance will be raised from commercial sources which may include securities issuance such as Eurobonds in the International Capital Market.”

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