$5.5 Billion Loan Consistent with Debt Management Strategy

The Debt Management Office, DMO, has said that the proposed $5.5 billion loan comprised $2.5 billion new borrowing and USD3 billion for refinancing, noting that the latter is purely a portfolio restructuring activity that would not result in any increase in the public debt.

The DMO in a statement on Thursday, said the $2.5 billion new borrowing through Eurobonds to finance the deficit in the 2017 Appropriation Act and the refinancing of existing domestic debt through external capital raising of USD3 billion, were consistent with Nigeria’s Debt Management Strategy.

The DMO said: “The proposed $2.5 billion new borrowing through Eurobonds to part finance the deficit in the 2017 Appropriation Act and the refinancing of existing domestic debt through external capital raising of $3 billion, are consistent with Nigeria’s Debt Management Strategy, whose main objective is the increase external financing with a view to rebalancing the public debt portfolio in favour of long-term external financing in order to reduce the cost of debt and lengthen the maturity profile.

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