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LAGOS Dec 7 Nigeria has appointed Citigroup
, Standard Chartered Bank and Stanbic IBTC Bank
to manage a planned $1 billion Eurobond sale and hopes
to start the issuance process in January, Finance Minister Kemi
Adeosun said on Wednesday.
Citi, Standard Chartered Bank and Stanbic IBTC would manage
any follow-up Eurobond issuance for Nigeria over the next three
years so as to cut short the tendering process, Adeosun said.
President Muhammadu Buhari's cabinet approved the
appointment after Adeosun's presentation. They also appointed
legal advisers for the issue.
The government began the process of appointing banks for the
Eurobond sale in September and had said it wanted to issue the
bond by the end of the year. Adeosun said a "fully competitive
open tender process" was carried out before the appointments.
"The $1 billion Eurobond programme is part of funding for
2016 budget and we hope to be able to commence the process in
January," Adeosun told reporters.
Nigeria is in its first recession in 25 years and needs to
find money to make up for shortfall in its budget. Its revenues
from oil have plunged due to low global prices and militant
attacks in its crude-producing heartland, the Niger Delta.
Vice President Yemi Osinbajo told Reuters last week that the
government aimed to conclude the sale of the Eurobond by the end
of the first quarter of 2017.
"We are expecting to get quite a competitive pricing on the
issuance programme ... to be used for the purpose of funding
capital projects in the 2016 budget within the month of
January," she said, noting that recent gains in the oil price
would help with the marketing of the bond.
(Reporting by Felix Onuah; Writing by Chijioke Ohuocha; Editing
by Alexis Akwagyiram and Louise Ireland)