DMO shortlists banks to manage $1bn Eurobond sale in Q4


The Debt Management Office said that it has shortlisted banks to manage its planned $1 billion Eurobond sale.
The DMO explained that although the government had not made a final decision on the issue, it would sell $1 billion in Eurobonds by the end of the year.
It, however, said that no bank had been appointed yet to arrange the issue.
An official of the DMO , who pleaded anonymity, said that the list had been sent to the Bureau of Public Procurement, after which the Minister of Finance, Mrs. Kemi Adeosun, would present the names to the cabinet for approval.
The DMO official also did not disclose how long the process would last. “The names have been picked but it has to go through government process.The issue will happen this year,” he said.
Nigeria has $500 million of commitments for the planned Eurobond and any decision to increase the size of the offer will depend on pricing, Finance Minister Kemi Adeosun had said.
The official disclosed that Adeosun met with Moody’s Investors Service last weekend to discuss Nigeria’s ratings before the bond sale.
Moody’s had in April downgraded Nigeria’s sovereign rating to B1 from Ba3, citing risks to government efforts to diversify revenues away from oil, the mainstay of its economy.
However, Foreign and domestic participation in equities trading at the Nigerian Stock Exchange has continued on a downward trend as revealed by the NSE’s Domestic and Foreign Portfolio Investment report for September.
Total transactions at the nation’s bourse decreased by 19.49 per cent from N117.71 billion recorded in August 2016 to N94.77 billion (about $0.31 billion) in September 2016.
Also, total transactions from January to September 2016 decreased significantly by 40.59 per cent from N1, 560.43 billion recorded within the same period in 2015 to N927.08 billion in 2016.
According to the report, both foreign and domestic activities had been decreasing, with the foreign activity decreasing faster.
Although domestic investors outperformed their foreign counterparts by about 8 percent, domestic transactions decreased by 16.98 per cent from N61.65 billion in August 2016 to N51.18 billion in September 2016, while FPI transactions decreased by 22.24 per cent from N56.06 billion in August 2016 to N43.59 billion in September 2016.
Monthly foreign inflows outpaced outflows as foreign inflows decreased by 29.65 per cent from N34.70 billion in August to N24.41 billion in September 2016.