The Federal Government has said it would issue $1 billion Eurobond in the third quarter of this year towards its securing of $3 billion loan from the World Bank and African Development Bank.
The development came as the naira, yesterday, depreciated sharply to N375 per dollar in the parallel market due to increased speculation driven by anxiety over non-release of details of the flexible exchange rate announced by the Central Bank of Nigeria, CBN, last month.
This is as declining value of the naira against the United States dollar and other international currencies has eroded the value of seaport terminal operators’ earnings by about 238% over the past ten years.
Addressing a meeting with international investors in London on Tuesday, Minister of Finance, Mrs. Kemi Adeosun, said Nigeria might issue a $1 billion Eurobond in the third quarter and that it was close to securing $3 billion of funding from the World Bank and African Development Bank.
According to Kevin Daly, a money manager at Aberdeen Asset Management Plc, who attended the talks, Adeosun said the government was committed to a budget deficit of not more than N2.2 trillion ($11.1 billion), or 2.1 percent of Gross Domestic Product, GDP.
Nigeria has sold dollar bonds twice, the last time in mid-2013, when it raised $1 billion of five- and 10-year debt.
The government has said it would fund the fiscal gap with about $10 billion of debt, half of it in foreign currencies.