The Minister of Finance, Kemi Adeosun has revealed that President Muhammadu Buhari’s trip to China aimed to “borrow the cheapest money possible” to finance the 2016 budget deficit and build a stronger ties with China.
The Minister, while speaking with Financial Times and Reuters, said the country was considering selling a Chinese panda bond to help finance a budget deficit of about $11bn. She said, “We are looking obviously at the lowest cost of funds to fund our budget deficit”.
She also added that, “Initially, we were looking simply at the euro-bond but then we began to explore opportunities; so there is a possibility of issuing a panda bond”. Adeosun reiterated that the priority is to borrow “the cheapest possible money”, which would be a total of 1.8tn naira from international and Nigerian markets.
She noted that the renminbi-denominated bond would be cheaper than issuing a euro-bond. She said that, “There is the possibility of doing a Samurai (yen-denominated bond) which is also an option we will look at. We are simply shopping around for the best deals”.