Four Nigerian banks have raised $1.45 billion (N227.65 billion) from the creation of sovereign benchmark in the International Capital Market (ICM), the Debt Management Office (DMO) said on Friday.
The DMO Director-General, Abraham Nwankwo, said this at a one-day retreat on “Opportunities for the Private Sector from Public Debt Management”.
The event was organised in Lagos by the DMO for financial journalists.
Mr. Nwankwo said that the amount was raised between January 2011 and July 2013, adding that the banks that issued the Eurobonds were Guaranty Trust Bank, Access Bank, Fidelity and First Bank.
He said that achievements recorded in the development of the domestic debt management led to the endorsement of the FGN Bond market by reputable financial institutions.
According to him, the financial institutions were JP Morgan and Barclays Capital.
Mr. Nwankwo said that the establishment of the Nigerian Sovereign Bond in the ICM provided foreign investors with the requisite market information for investment decisions. He said that the sovereign bond created market benchmarks for future borrowings by the sovereign, sub-national and corporate institutions.
“More Nigerian corporate institutions should leverage on existing benchmarks to raise long-term capitals in the domestic market and ICM to develop the real sector and infrastructure,” Nwankwo said.
According to him, DMO will continue to strengthen and deepen the FGN Bond for enhanced liquidity through the issuance of benchmark bonds and introduction of other varieties of debts instrument.
He said that the organisation would soon float N80 billion FGN bonds in form of Global Depository Notes (GDN) and 100 million dollars (N15.7 billion) worth of Nigerian Diaspora Bond to strengthen Nigeria’s presence in the ICM.
Mr. Nwankwo said that developments in the nation’s bond market had led to increased foreign exchange in flows, growth in external reserves and stability of the Naira.
“Foreign investor holdings in FGN securities amounted to $5.11 billion as at December 31, 2012 compared to about 500 million dollars as at January, 2012,” he said.