JUST IN: DMO Reacts as Edun’s Chapelhill Reportedly Gets $1 Billion Eurobond Deal

DMO Reacts as Edun’s Chapelhill Reportedly Gets $1 Billion Eurobond Deal

A report alleged that the engaged the services of Chapelhill for the issuance of Nigeria EurobondThe Debt Management Office (DMO) has denied reports that Wale Edun's Chapelhill got a Eurobond deal from the Nigerian The DMO said the Federal Executive Council has not approved any Eurobond issuance and that the report was untrue

Henzodaily.ng's Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

A report by Bloomberg on Thursday, March 14, 2024, said plans to make the Nigerian economy attractive to investors by issuing Eurobonds after two years.

According to the report, the Nigerian government hired Chapel Hill Denham, an investment and securities trading company founded by Nigeria's Minister of Finance and Coordinating Minister of the Economy, Wale Edun and Standard Chattered to advise the government on best strategies to deploy the bond after two years hiatus.

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Wale Edun's firm allegedly gets $1bn Eurobond dealPresident 's government plans Eurobond deal
Credit: State House
Source: Twitter

DMO debunks report

However, quickly responding to the report, the Debt Management Office (DMO) debunked claims that Edun's company has secured a Transaction Adviser deal for the next Eurobond.

The DMO said the media report Chape Hill had been chosen for the transaction was incorrect.

DMO statement said:

The statement reads in full, “The Debt Management Office (DMO) would like to clarify that recent news reports suggesting the of Transaction Advisers for a potential Eurobond issuance are inaccurate.

“The appointment of Transaction Advisers by the DMO is done in accordance with the provisions of the Public Procurement Act, 2007 and is subject to the approval of the Federal Executive Council (FEC).

“Also, the Issuance of Eurobonds by the in the International Capital Market is subject to the approval of the FEC and receipt of the Resolution of the National Assembly (NASS) in accordance with the provisions of the Fiscal Responsibilities Act, 2007 and Debt Management Office (Establishment, Etc.) Act, 2003. Currently, the DMO has not received the requisite approvals from the FEC and Resolution of the NASS for any Eurobond Issuance.

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“We encourage the public to rely on official statements from the DMO for accurate updates on Nigeria's debt management activities.”

It was reported that Chapelhill would receive $1 billion as a fee for acting as Transaction Adviser in the deal.

Chapelhill appointed by FG in 2021

Vanguard reports Chapelhill was one of the five Transaction Advisors appointed by the Nigerian government in 2021 for Eurobond issuance.

The DMO reportedly raised about $5.25 billion through the bonds, as reports say the deal lasted for about two years and has since expired.

The agency said the FEC neither considered nor approved Chapelhill's reappointment.

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Henzodaily.ng reported that the federal government has announced its intention to enter the foreign debt market with the first Eurobond issuance in two years.

In preparation, FG has enlisted the expertise of leading global investment banks, including Citibank NA, JPMorgan Chase & Co, and Goldman Sachs Group Inc..

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It also appointed Standard Chartered Bank and the -based financial advisory firm Chapel Hill Denham to consult on this venture.

Source: Henzodaily.ng

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