1 Billion Euros Bond Approved

The second Eurobond of 1 Billion Euros arranged by Government for flotation to the international capital market has been endorsed by Parliament. The bond, which was approved yesterday after a heated argument between the Minority and Majority in Parliament, is expected to be floated on July 23, this year. In May, this year, Cabinet approved the bond flotation. Though the amount would be subjected to international market conditions, government intends to use the proceeds for counterpart funding of capital projects, capital expenditures which were approved in the 2013 Budget with priority given to self-financing projects and the refinancing of public debt to help reduce the country’s cost of borrowing. The transaction advisors are Citi Group and Barclays, EDC Stock Brokers and Strategic African Securities – Co-Managers: SN Denton – International Legal Counsel, as well as JLD & MB Legal Consultancy – Local Legal Counsel. In 2007, Government issued its first 10-year Eurobond to raise $750 million from the international market. Government is currently working to put finishing touches to the due diligence processes, Finance Minister, Seth Terkper told journalists. Mr Terkper is expected to explain later to Parliament to how government wants to use the resources. Noting that Government was in talks with its lead advisors, he said it would also interact with international investors to ensure the success of the bond flotation.