* Nigeria in roashow to sell $1 bln Eurobond
* FX risk, oil production weigh on discussion - source
* Bond likely to price above 7 pct yield this week
(Adds source on roadshow meetings)
By Camillus Eboh and Chijioke Ohuocha
ABUJA/LAGOS, Feb 8 Nigeria's parliament has
approved the government's request to sell a $1 billion Eurobond
to help the country finance its budget deficit, senate spokesman
said on Wednesday.
Nigeria is suffering its first recession in 25 years and
needs to find money to make up for shortfall in its budget. Its
revenues have plunged along with global oil prices and militant
attacks in its crude-producing heartland, the Niger Delta.
Finance Minister Kemi Adeosun, Central Bank Governor Godwin
Emefiele and other senior government officials have been meeting
investors this week in London and the United States on a
roadshow to issue the bond with a 15-year maturity.
Adeosun said in October that Africa's biggest economy had
commitments for half the amount it wanted to raise from the
Eurobond, to be issued in dollars.
"... the only request for approval from the executive was
... for the issuance of $1 billion Eurobond ... for the funding
of the 2016 budget deficit, and we immediately granted the
approval," Senate spokesman Aliyu Sabi Abdullahi said.
Low oil prices have triggered chronic dollar shortages in
the economy and battered the naira, which lost a third
of its official value last year and is now trading at a 39
percent discount on the black market.
A source with knowledge of the investor meetings, organised
by Citigroup and Standard Chartered Bank, told
Reuters that oil production and currency were the two main
issues investors were considering in pricing the bond this week.
Investors also asked about the continuity of government
policies in the absence of President Muhammadu Buhari, who is in
Britain on medical leave.
"The real concern is oil production and FX. Will there be a
further devaluation this year?" the source said, adding that
investors queuing for the dollar bond were looking at a
potential yield above 7 percent.
Senate spokesman Abdullahi said the government wanted to use
part of the Eurobond proceeds to finance two rail projects. The
source added that recurrent expenditure would also be funded
from the bond.
The government has laid out plans to spend a record 6.86
trillion naira ($22.5 billion) to help pull Nigeria out of
recession in a draft 2017 budget sent to parliament for
approval. It planned to spend 6.06 trillion naira last year, but
struggled to fund it.
The government has set out a $30 billion overseas borrowing
plan to finance planned infrastructure projects until 2018, but
analysts are sceptical whether it would be able to raise the
($1 = 305.25 naira)
(Writing by Chijioke Ohuocha; Editing by Larry King)