DMO Denies Appointment of Transaction Adviser for Eurobond

0
71

The Debt Management Office (DMO) has said it has not appointed anyone as a transaction adviser for the next Eurobond.

DMO also clarified that such appointment requires the approval of the Federal Executive Council while the issuance of bonds in the international market requires a resolution of the National Assembly. 

The clarification from DMO is coming against the claims in some media report (not financialtrust.com.ng), that the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun’s company has secured a Transaction Adviser deal for the next Eurobond. But the Debt Management Office said in a statement that the report was incorrect.

According to the statement, “The Debt Management Office (DMO) would like to clarify that recent news reports suggesting the appointment of Transaction Advisers for a potential Eurobond issuance are inaccurate.

 

“The appointment of Transaction Advisers by the DMO is done in accordance with the provisions of the Public Procurement Act, 2007 and is subject to the approval of the Federal Executive Council (FEC).

 

“Also, the Issuance of Eurobonds by the Federal Government of Nigeria in the International Capital Market is subject to the approval of the FEC and receipt of the Resolution of the National Assembly (NASS) in accordance with the provisions of the Fiscal Responsibilities Act, 2007 and Debt Management Office (Establishment, Etc.) Act, 2003. Currently, the DMO has not received the requisite approvals from the FEC and Resolution of the NASS for any Eurobond Issuance.

 

“We encourage the public to rely on official statements from the DMO for accurate updates on Nigeria’s debt management activities.”

 

It was reported that Chapelhill would receive $1 billion as fee for acting as Transaction Adviser in the deal.

Chapelhill was one of the five Transaction Advisers appointed by the federal government in 2021 for the issuance of Eurobonds.

 

With that group, DMO was able to raise $5.25 billion through Eurobonds.

It was learnt that the appointment was for two years and has expired. 

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here