Eurobonds: Appointment of Advisers Subject to FEC, NASS Approval -DMO
Nigeria’s Debt Management Office (DMO) said the authority has not approved Eurobond issuance in the international debt capital market. The DMO said the appointment of transaction advisers for the issuance of Eurobonds is subject to approval of the Federal Executive Council (FEC).
The Director-General of the DMO, Patience Oniha said this in an interview with the News Agency of Nigeria (NAN) on Saturday in Abuja.
Oniha spoke against the backdrop of media reports that a company linked to the Minister of Finance, Mr Wale Edun, was appointed as one of the Transaction Advisers for a potential one billion dollars Eurobond.
The alleged inclusion of Chapel Hill Denham on the list of Nigeria’s US dollar bond proposal triggered public responses. The investment banking group is linked to the finance minister.
Public critics believe the firm has an easy way out among other players in the investment banking space. Shining light on the deal, the DMO boss said that the National Assembly (NASS) approval was also a prerequisite for such an appointment.
According to her, the appointment of Transaction Advisers by the DMO is done under the provisions of the Public Procurement Act, 2007 and is subject to the approval of FEC.
She said that recent news reports suggesting the appointment of transaction advisers for a potential Eurobond issuance were inaccurate. The director-general said that the debt office was yet to get approval from FEC or NASS for the issuance of Eurobonds.
“The issuance of Eurobonds by the Federal Government of Nigeria in the international capital market is subject to the approval of the FEC and receipt of the resolution of NASS.
“This is done in accordance with the provisions of the Fiscal Responsibility Act, 2007 and the Debt Management Office (Establishment, Etc.) Act, 2003. Currently, the DMO has not received the requisite approvals from the FEC and resolution of the NASS for any Eurobond issuance.
“We encourage the public to rely on official statements from the DMO for accurate updates on Nigeria’s debt management activities,” she said. NAN reports that the company in question, Chapel Hill Denham, was one of the five issuing houses appointed in 2021 during former President Muhammadu Buhari-led government as transaction advisers for Nigeria’s Eurobonds.
Citigroup Inc., JPMorgan Chase & Co., Goldman Sachs Group Inc., and Standard Chartered Bank were the other appointed companies. With that set of transaction advisers, Nigeria issued a total of 5.25 billion dollars in Eurobonds in 2021. #Eurobonds: Appointment of Advisers Subject to FEC, NASS Approval -DMO #Foreign Investors Boost Interest in Nigeria US Dollar Bonds
