Nigeria likely to launch $1 bln Eurobond sale this week -finance minister

Nigeria is likely to launch a $1 billion Eurobond sale this week, its finance minister said on Wednesday, and will apply for a World Bank loan to support its public finances after parliament approves the 2017 budget.
"We're on course with everything we're doing," Kemi Adeosun told reporters when asked about the planned Eurobond sale, without giving details.
Regarding the loan, Adeosun said: "The talks with the World Bank on this loan started last year but it's meant for this year's budget support."
The West African country has been in talks with the Washington-based lender for a year but has not yet submitted proposals on how to reform its oil-dependent economy that are required in exchange for support, according to diplomats.
The 2017 budget passed its second reading in parliament last week. The record 7.298 trillion naira ($23.99 billion) package is aimed at dragging Nigeria's economy - Africa's biggest - out of its first recession in 25 years.
Based on an exchange rate of 305 naira per dollar and projected oil output of 2.2 million barrels per day at a price of $42.5 dollars per barrel, the budget projects a deficit of 2.36 trillion naira.
To bridge that gap, Nigeria has said it is seeking to borrow $4 billion in total this year from the World Bank and other foreign institutions, plus the $1 billion Eurobond sale.
The OPEC oil producer has also received $600 million from the African Development Bank as budget support but the lender has held back a second $400 million tranche until Nigeria submits a reform proposal.
The AfDB has criticised hefty hard currency curbs imposed by the central bank.
© Reuters News