DMO to Appoint Legal, Technical Advisers for Eurobond

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By James Emejo in Abuja

The Debt Management Office (DMO), on behalf of the federal government, has commenced the process of appointing two international banks as joint lead managers and a local bank as financial adviser for the planned Federal Government Medium Term Note (FGMTN) Programme (2016-2018) as well as the issuance of $1 billion out of the $4.50 billion FGMTN programme in 2016.

In addition, the federal government is also seeking to retain the services of an international and Nigerian law firms which will act as joint legal advisers for the FGMTN.  The legal advisers will be appointed separately by the DMO.

Furthermore, the federal government plans to engage the services of a technical adviser on communication who will be required to work with other transaction advisers to ensure the successful implementation of the FGMTN.

The DMO, in a notice of request for proposal on the positions being advertised, which was posted on its website, said the the purpose of the FGMTN programme was “to enable the federal government have the flexibility of quickly taking advantage of favourable market conditions in the International Capital Market (ICM) to raise funds, if and only when the need arises”.

It added that bids are to be turned in by 12 p.m on September 19, 2016 at its head office in Abuja, warning that it reserves the right to reject any bid not received by the stipulated time and in the form prescribed by this Request For Proposal.

The debt office further stated that financial bids would be opened after a shortlist of prospective bidders  had been compiled on the basis of the evaluation of the technical bids and the interviews.

The floating of the Eurobond is expected to help the federal government fund part of the N6.1 trillion budget for the year as it plans to source N2.2 trillion to bridge the deficit.