Nigeria seeks co-arrangers for 80 bln naira depository note issue

Nigeria is looking for an international bank and a local lender to act as co-arrangers for 80 billion naira ($491 mln) depository note to be issued this year, the Debt Management Office (DMO) said on Wednesday.

Abraham Nwankwo of DMO

   The DMO said in a notice it had appointed a sole depository bank and an arranger for the offering, but did not name them. A source at the debt office told Reuters Nigeria had mandated Citibank to act as the depository bank.
   A Citibank spokesperson declined to comment. Bids for co-arrangers are due on Oct. 3.
   Nigeria is increasing the amount it borrows from overseas to around 40 percent of all debt over the next three to five years, from 12 percent, seeking lower funding costs.
   The debt office in May said it will issue 80 billion naira in global depository notes this year, after a $1 billion eurobond, to deepen its footprint in international debt markets.
   Citibank and Deutsche Bank acted as advisers on the $1 billion eurobond issued in July, which was four times oversubscribed. Nigeria also plans to issue $100 million in diaspora bonds this year and is seeking advisers.
   The DMO said the depository note will be documented under U.S. rules and listed in Europe.