The Eurobond is set to generate money from global capital markets and inject it into Africa’s most populous country’s gas-to-power infrastructure projects.
Nwanko, speaking in an exclusive interview with a Business Day Nigeria team in Abuja, added that another bond – named the Diaspora Bond – would allow the Nigerian government to pool money from Nigerians residing abroad.
This money would be utilised for developmental projects in Nigeria. It has emerged that the Diaspora Bond would hopefully come on stream by December this year.
“The plan is that by these respective dates, all preparations and processes, including the main bond issue would have been concluded with the needed funds raised from the international capital market,” Nwanko said.
“The essence of the $1 billion Eurobond is to create more windows of opportunity for the country’s private sector players to access foreign funds at low cost, while the $100 million which is Nigeria’s first ever Diaspora bond is to afford citizens living abroad the privilege of investing in their own country and contribute to the nation’s development.”
Business Day Nigeria reported that these two bonds were part of the Federal government’s $8 billion medium term external borrowing plan. This plan has already been approved by the National Assembly and Federal Executive Council (FEC).