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Nigeria to launch global sukuk and new loans totaling $2.8 billion

According to a Tuesday letter to lawmakers, Nigerian President Bola Tinubu asked the parliament to approve $2.3 Billion in new loans as well as to authorize the issuance a $500 Million debut sovereign sukuk.

Wale Edun is the Finance Minister, Coordinating Minister for Economy and the Minister of Finance. He told an Abuja economic summit on Monday that government was focusing its attention on green bonds and diaspora bond, saying they were priced cheaper than Eurobonds.

According to the Nigerian debt office chief, Nigeria could issue as much as $2.3 billion of international bonds by year's end, depending on the market conditions.

Last December, the most populous African country sold its first international bonds in almost three years. However, it has yet to tap into global capital markets in 2025.

Tinubu's reforms have led to a positive rating from the ratings agencies and a better fiscal situation in Nigeria. The government is hoping that investors will reward it for its reforms by lowering yields on debt issuances in the future.

Tinubu said in his letter that the new funds will be used to refinance Eurobonds maturing by November and part-finance budget deficits. The letter said that the new funds would be used to refinance Eurobonds due in November and part-finance the budget deficit.

The president stated that the government will issue sukuks with or without credit enhancements provided by the Islamic Corporation in order to replicate its success on domestic markets. (Reporting and writing by Camillus Eboh, Chijioke Ahuocha, Hugh Lawson, Mark Potter).

(source: Reuters)