Federal Executive Council resolutions for Wednesday 13th March, 2013.

[FMINigeria]

Briefing State House correspondents immediately after the Federal Executive Council Meeting, the Information Minister, Mr. Labaran Maku, said the  Coordinating Minister/Minister of Finance tabled a memorandum to seek council's approval for Nigeria to issue USD1 Billion Eurobond; USD 100 Million Diaspora Bond; and N80 Billion FGN Bonds through syndicated Global Depository notes.

The proceeds of these debt issues are to be utilized in the funding of infrastructural development projects/programmes of the present Administration which are critical to the attainment of its economic Transformation Agenda and Vision 20:2020.

That the Nigeria's debut entry into the International Capital Market (ICM) through the issuance of a USD500 million 10 year Bond in 2011 had been very successful as the bond which now trade at an impressive premium in the secondary market had indeed increased Nigeria's visibility in the International Financial Market.

The Information Minister said, after deliberations, Council approved the raising of funds from the International Capital Market (ICM) in 2013 through the issuance of a USD1billion EuroBond, a USD100 million Diaspora Bond and an N80 billion (about USD500 million) Federal Government of Nigeria Bonds (FGN Bonds) backed syndicated Global Depository Notes (GDN).

The Council further approved the Total Transaction Cost of N1.64 billion for the issuance of the three debt instruments.

The Council also approved the process of appointing the Transaction Parties for the USD1billion EuroBond by the Direct Procurement Method as provided in Section 42(1) (b) and 42(1) (d)(i)-(ii) of the Public Procurement Act, 2007, for which a "No Objection" clearance has already been obtained from the BPP.

The Council again, approved that the Total Cost of N1.64 billion be partly funded from the unutilized balances of N1.72 million and N381.58million from the Paris Club Redemption Proceeds Account and the 2011 EuroBond Expenses respectively, while the shortfall of N1.255 billion be funded from the FGN Bond Issue Proceeds Account.

Maku also told reporters that the Minister of Lands, Housing brought a memo to seek council's ratification of the President's anticipatory approval for the concession of the land reclamation and infrastructural development of FESTAC Phase II, Lagos.  According to the Information Minister, the Federal Government acquired 2,024 hectares of land in Lagos, in 1977 for housing development preparatory to the hosting of FESTAC 77.  The Phase I of the project (existing FESTAC) had been developed leaving a balance of 1,126 hectares of swampy land for reclamation and infrastructural development as FESTAC Phase II.

The efforts to develop the swampy land since the 1980s had been unsuccessful due to the huge capital involved but FHA has taken the advantage of Public-Private Partnership to prosecute the project in line with extant government policy.

After deliberations, council ratified the President's anticipatory approval for the development of FESTAC Phase II, Lagos, through effective private sector participation and the selection of Messrs New FESTAC Property Development Company Limited as the preferred Concessionaire/Developer at a premium of N25, 765,000,000.00 payable for a 30 years concession period plus a ground rent of N150, 000,000.00 per annum with 3-years moratorium period.

Maku said the Minister of Interior briefed the council on the progress and challenges of his ministry in the year 2012.

Via: Federal Ministry of Information (FMI) Nigeria