FG ap­points Stan­bic IBTC and Gold­man Sachs as fi­nan­cial ad­vis­ers for $300 mil­lion di­as­pora bond

Financial Nigeria Magazine - - Finance -

The fed­eral gov­ern­ment has re­port­edly ap­pointed Stan­bic IBTC, the lo­cal unit of South Africa’s Stan­dard Bank, and Gold­man Sachs, an Amer­i­can in­vest­ment bank­ing gi­ant, as fi­nan­cial ad­vis­ers for a pro­posed $300 mil­lion di­as­pora bond.

The di­as­pora bond, which is ex­pected to be is­sued in the sec­ond half of the year, is tar­geted at Nige­ri­ans liv­ing abroad, who sent home over $20 bil­lion in re­mit­tances in 2015.

Kemi Adeo­sun an­nounced ear­lier in Jan­uary that the Na­tional Assem­bly had ap­proved the di­as­pora bond and the pro­ceeds will be used to sup­port the gov­ern­ment’s de­vel­op­ment agenda. She said the di­as­pora bond will be rolled out af­ter the gov­ern­ment com­pletes the $1 bil­lion Eurobond. pipe­line sys­tem – may re­open by the end of the sec­ond quar­ter of this year, ac­cord­ing to Reuters.

The pipe­line was shut down for most of last year ow­ing to fre­quent sab­o­tage by Niger Delta mil­i­tants. The pipe­line trans­ports crude oil to the For­ca­dos Ex­port Ter­mi­nal, which has an ex­port ca­pac­ity of over 400,000 bar­rels per day. Re­pair work on the pipe­line re­cently re­sumed af­ter the fed­eral gov­ern­ment be­gan seek­ing a peace deal with the mil­i­tants.

With the ex­pected re­turn on stream of the pipe­line, Avuru said he ex­pects Se­plat to achieve a “de­cent” oil pro­duc­tion this year. The con­tin­ued out­age of the pipe­line caused Se­plat to re­port a $97.8 mil­lion loss for the nine-month pe­riod ended Septem­ber 30th, 2016.

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