Can ‘Panda’ fund Nigeria’s Record Budget?
No talk of Kanye West’s act, Desiigner but economy talks!
Nigeria is considering a sale of Chinese Panda bonds to help fund a record budget aimed at reviving Africa’s biggest economy as it suffers a slump in global oil prices, the finance minister said on Saturday.
Nigeria’s Minister of Finance is quoted as saying:
“Initially we were looking simply at the Eurobond market but then we began to explore opportunities in the renminbi market, so there is a possibility of issuing a Panda bond,” she said.
China launched the market for Pandas – yuan-denominated bonds sold by overseas entities on the mainland – in 2005 but only a handful of foreign entities have raised debt there. HSBC (HSBA.L) and Bank of China (Hong Kong) Ltd did so late last year.
Songtian said a framework on currency swaps has been agreed with Nigeria making it easier to settle trade deals in Yuan.
China has currency swap deals with countries ranging from Kazakhstan to Argentina and New Zealand.
Beijing is deepening ties with Nigeria, as it is with countries across Africa.
It signed agreements to develop infrastructure and to cooperate with Nigeria.
ICBC also signed agreements on manufacturing with Dangote group.
Buhari is in China for this already.