News Column

Firms Raise U.S.$30 Billion From Foreign Bonds, Says DMO

August 15, 2014

Mathias Okwe

THE Debt Management Office (DMO) Thursday revealed that Nigerian firms have so far raised over $30 billion from the international debt market to expand their operations.

In a statement by the Director-General, DMO, Dr. Abraham Nwankwo, he noted that for the first time in Nigeria's economic history, the private sector has been able to access long-term funds from both the domestic and international capital markets.

He said: "The successful issuance of three Nigerian Sovereign Eurobonds in the International Capital Market - one in 2011 and two in 2013 - have opened the window for Nigeria's private sector to raise required foreign currency funds.

"They are now able to fund long-term real sector projects (agriculture, manufacturing, housing, mineral exploration and processing, infrastructure, etc) for diversified and sustainable economic growth towards employment generation and poverty reduction."

The director-general further noted that the success recorded was "part of the transformation agenda of President Goodluck Ebele Jonathan whereby positive change is taking place in various facets of the economy, saying the domestic bond market has been meticulously developed with appropriate products and institutional frameworks so that long-term debt capital (bonds) with tenor of up to 20 years can now be easily sourced in Nigeria."

Nwankwo, therefore, solicited the co-operation and collaboration of all stakeholders to "sustain the momentum and make maximum use of the opportunity, as patriotic responsibility demands the commitment of all in continuation of the positive transformation that is taking place."

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Source: AllAfrica

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