Nigeria will launch its planned Eurobond issue on Oct. 11, the country’s finance minister announced on Monday.
Zainab Ahmed also announced that roadshows would be held in New York and Lagos for the dollar-denominated issuance, which aims to raise roughly $3 billion.
To fund its 2021 budget deficit, the government plans to borrow the same amount on a multilateral and bilateral basis.
According to Ahmed, the 2021 budget will fund the budget deficit 50% locally and 50% externally.
“We plan to do about half of that through Eurobonds and the other half through other sources, such as multilateral and bilateral.
A total of approximately $6.2 billion in external borrowing was approved by Parliament in July.
Africa’s largest economy, Nigeria, is struggling to boost growth after exiting its second recession since 2016 in the fourth quarter of last year. According to the nation’s incoming statistician-general, gross domestic product growth will exceed 5% by 2021.
According to statistics released last week, its economy grew by 5.01% in the second quarter as an easing of COVID-19 lockdown measures and an increase in vaccinations boosted commercial activities. However, persistently high inflation has plagued the nation.