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No Plans For Eurobond In 2019– DMO

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The director-general of the Debt Management Office (DMO) has said the federal government does not have plans to approach the Eurobond market to raise funds this year after its last outing in November of last year as the Central Bank of Nigeria plans to issue N809.3 billion in Treasury Bills in the third quarter of the year.

DMO chief, Patience Oniha speaking at an Islamic finance conference in Lagos yesterday said Nigeria has no plans to return to the Eurobond market this year, after it raised $2.86 billion last year. Nigeria approved a three-year plan in 2016 to borrow more from abroad.

The federal government had planned to cut down on its local borrowings whilst making 40 percent of its loans to come from offshore sources to lower borrowing costs and help to fund its budgets. Oniha while answering a question on whether the government would consider a U.S. dollar- denominated Eurobond, said, “For 2019, given the process, I would say no.”

She said foreign borrowing for the 2019 budget is set at N802 billion or $2.7 billion. Nigeria, which emerged from recession last year, has borrowed abroad and at home over the past three years to help finance its budgets and to fund infrastructure projects, but debt servicing cost is also rising.

The government has said it wanted to tap concessionary long-term loans to finance its 2019 budget in addition to borrowing at home.  It sold $3 billion in Eurobonds in 2017, part of which it used to fund its budget that year. It then followed with a $2.5 billion Eurobond sale last year to refinance local currency bonds at lower cost

Meanwhile, the CBN is set to mop up N809.3 billion in the third quarter of the year from the 91 day, 182 day and 364 day treasury bills maturing while the same amount would also be reissued in the same quarter of the year.

According to the circular on the breakdown of the Nigerian treasury bills issue programme released on the CBN website recently, a total of N80.6 billion, N154 billion and N574.7 billion in the 91-day, 182-day and 364-day treasury bill will be maturing while N90.6 billion, N188 billion and N530.7 billion in the 91-day, 182-day and 364-day respectively would be reissued in Q3.

The further breakdown of the maturing amount for the 91-day bill showed that N5 million would mature on the 13th and N3 million on the 20th of June 2019.On the 4th and 18th of July, N10 billion and N5.8 million. In August, three treasury bills would be maturing on the 1st, 15th and 29th when N28 billion, N4.3 million and N24.3 billion respectively would mature.

Similarly, the breakdown of the 182-day maturing amount showed that no treasuring bill will mature on the 13th and 20th of June. On the 4th and 18th of July N20 billion and N26.6 billion would mature, while N58.6 billion, N10 billion and N38.7 billion would mature in August 1st, 15th and 29th respectively.

Also, N124.6 billion and N14.6 364-day treasuring bill would mature on the 13th and 20th of June, N58.8 billion, N74.5 billion on the 4th and 18th of July and N136.5 billion, N20 billion and N145.4 billion on 1st, 15th and 29th August.

Due to this, N809.3 billion would also be reissued in the third quarter as N15 billion, N3 million, N10 billion, N5.8 million, N28 billion, N4.3 million and N24.3 billion 91 day treasury bill will be reissued in June, July and August. In the 182-day treasury bill N30 billion, N4 million, N20 billion, N26.6 billion, N58.6 billion, N10 billion and N38.7 billion would be issued. Lastly in the 364-day bill, N84.6 billion and N10.6 billion would be issued in June, N58.8 billion and N74.5 billion in July and N136.5 billion, N20 billion and N145.4 billion in August.

The director-general of the Debt Management Office (DMO) has said the federal government does not have plans to approach the Eurobond market to raise funds this year after its last outing in November of last year as the Central Bank of Nigeria plans to issue N809.3 billion in Treasury Bills in the third quarter of the year.

DMO chief, Patience Oniha speaking at an Islamic finance conference in Lagos yesterday said Nigeria has no plans to return to the Eurobond market this year, after it raised $2.86 billion last year. Nigeria approved a three-year plan in 2016 to borrow more from abroad.

The federal government had planned to cut down on its local borrowings whilst making 40 percent of its loans to come from offshore sources to lower borrowing costs and help to fund its budgets. Oniha while answering a question on whether the government would consider a U.S. dollar- denominated Eurobond, said, “For 2019, given the process, I would say no.”

She said foreign borrowing for the 2019 budget is set at N802 billion or $2.7 billion. Nigeria, which emerged from recession last year, has borrowed abroad and at home over the past three years to help finance its budgets and to fund infrastructure projects, but debt servicing cost is also rising.

The government has said it wanted to tap concessionary long-term loans to finance its 2019 budget in addition to borrowing at home.  It sold $3 billion in Eurobonds in 2017, part of which it used to fund its budget that year. It then followed with a $2.5 billion Eurobond sale last year to refinance local currency bonds at lower cost

Meanwhile, the CBN is set to mop up N809.3 billion in the third quarter of the year from the 91 day, 182 day and 364 day treasury bills maturing while the same amount would also be reissued in the same quarter of the year.

According to the circular on the breakdown of the Nigerian treasury bills issue programme released on the CBN website recently, a total of N80.6 billion, N154 billion and N574.7 billion in the 91-day, 182-day and 364-day treasury bill will be maturing while N90.6 billion, N188 billion and N530.7 billion in the 91-day, 182-day and 364-day respectively would be reissued in Q3.

The further breakdown of the maturing amount for the 91-day bill showed that N5 million would mature on the 13th and N3 million on the 20th of June 2019.On the 4th and 18th of July, N10 billion and N5.8 million. In August, three treasury bills would be maturing on the 1st, 15th and 29th when N28 billion, N4.3 million and N24.3 billion respectively would mature.

Similarly, the breakdown of the 182-day maturing amount showed that no treasuring bill will mature on the 13th and 20th of June. On the 4th and 18th of July N20 billion and N26.6 billion would mature, while N58.6 billion, N10 billion and N38.7 billion would mature in August 1st, 15th and 29th respectively.

Also, N124.6 billion and N14.6 364-day treasuring bill would mature on the 13th and 20th of June, N58.8 billion, N74.5 billion on the 4th and 18th of July and N136.5 billion, N20 billion and N145.4 billion on 1st, 15th and 29th August.

Due to this, N809.3 billion would also be reissued in the third quarter as N15 billion, N3 million, N10 billion, N5.8 million, N28 billion, N4.3 million and N24.3 billion 91 day treasury bill will be reissued in June, July and August. In the 182-day treasury bill N30 billion, N4 million, N20 billion, N26.6 billion, N58.6 billion, N10 billion and N38.7 billion would be issued. Lastly in the 364-day bill, N84.6 billion and N10.6 billion would be issued in June, N58.8 billion and N74.5 billion in July and N136.5 billion, N20 billion and N145.4 billion in August.

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