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DMO: Nigerian firms issue $3.4bn bonds in International Capital Market

By on August 19, 2014

The Director General, Debt Management Office (DMO), Dr. Abraham Nwankwo, has said a total of nine bonds worth $3.4 billion were issued in the international capital market by some Nigerian companies.

He added that about 22 Nigerian companies had raised over N223 billion from the domestic market between 2007 and 2013.

In a statement, the DMO boss noted that it would be “the first time in Nigeria’s economic history, the private sector has been enabled to access long-term funds from both the domestic and international capital markets.”

According to him, indigenous companies may have taken advantage of the window opened through the successful issuance of Nigerian Sovereign Eurobonds in leveraging the International Capital Market.

He said: “The successful issuances of three Nigerian Sovereign Eurobonds in the International Capital Market – one in 2011 and two in 2013 – have opened the window for Nigeria’s private sector to raise required foreign currency funds,” the statement emphasised.

“They are now able to fund long-term real sector projects (agriculture, manufacturing, housing, mineral exploration and processing, infrastructure, among others, for diversified and sustainable economic growth, towards employment generation and poverty reduction.”

Nevertheless, Nwankwo called for the cooperation and collaboration of all stakeholders to “sustain the momentum and make maximum use of the opportunity, as patriotic responsibility demands the commitment of all in continuation of the positive transformation that is taking place.”

He attributed the success so far achieved to “part of the transformation agenda of President Goodluck Jonathan, whereby positive change is taking place in various facets of the economy, the Domestic Bond Market has been meticulously developed with appropriate products and institutional frameworks to that long-term debt capital (bonds) as tenor of up to 20 years can now be easily sourced in Nigeria.”

 

 

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