The Federal Executive Council on Wednesday approved the issuance of $2.9bn and other securities in Eurobond from the international capital market.
The Minister of Finance, Zainab Ahmed, disclosed this to State House correspondents at the end of the weekly meeting of the council presided over by President Muhammadu Buhari at the Presidential Villa, Abuja.
Ahmed said the Eurobond provided for in the 2018 Appropriation Act was meant to finance capital projects of the budget.
She added that N374.618m was also approved as payment for transaction partners.
She said, “Today (Wednesday), in the Federal Executive Council, we got approval for the issuance of $2.9bn and other securities in Eurobond from the international capital market and the focus of this approval is to enable us to implement the external borrowing plan of N849.67bn equivalent of $2.786bn which is provided for in the 2018 Appropriation Act and this is to fund capital projects in 2018 Budget.
“We also as part of that, got approval to raise the sum of $82.54m to bridge the shortfall of the 500million Eurobond that matured on July 12, 2018.
“In addition to this approval for the issuance of Eurobond, we also got the approval for payment to transaction parties and their respective fees like settling bills and expenses.
“We have as parties for the transactions, two joint league managers, a combination of Citibank group as well as Standard Chartered Bank as joint league managers and FSB Merchant Bank as financial advisers; the White and Case LIP as legal managers and Ighodalo as legal advisers for Nigeria. The total cost for this advisory group is N374,618,889.”
The minister said the council also approved the Livelihood of Family Improvement Project in Niger Delta, called Life and D.
He said the approval was in the sum of $60m that would be a combination of loans and grants.