Dmo to issue new fgn bond for 2017 budget
You're referring to the Debt Management Office (DMO) issuing new foreign currency bonds to finance the 2017 budget of Nigeria.
Here's a summary of the information:
Background: In 2016, the Nigerian government faced a significant budget deficit, which was partly financed through foreign borrowing. To address this, the DMO issued a $1 billion Eurobond in October 2016 to raise funds for the 2017 budget.
2017 Budget: The 2017 budget, which was presented to the National Assembly in December 2016, had a total budget size of N7.28 trillion (approximately $20 billion). The budget was designed to stimulate economic growth, create jobs, and address infrastructure deficits.
Debt Management Office (DMO): The DMO is responsible for managing Nigeria's public debt, including domestic and foreign debt. The DMO issues bonds on behalf of the federal government to raise funds for budget financing, infrastructure development, and other purposes.
New Foreign Currency Bond: In 2017, the DMO issued a new foreign currency bond to raise additional funds for the 2017 budget. The bond was issued in two tranches:
- $1.5 billion 7-year bond: This bond was issued in March 2017 with a coupon rate of 7.875% and a maturity period of 7 years.
- $1 billion 12-year bond: This bond was issued in September 2017 with a coupon rate of 8.125% and a maturity period of 12 years.
Purpose of the Bond: The proceeds from the bond issuance were used to finance the 2017 budget, which included expenditures on infrastructure development, social services, and other priority areas.
Impact: The bond issuance helped to reduce Nigeria's budget deficit and provided additional funding for the government's development programs. The bond also helped to diversify Nigeria's debt portfolio, reducing its reliance on domestic borrowing.
I hope this information is helpful!