Nigeria’s Senate approved President Muhammadu Buhari’s request to issue $2.8 billion of Eurobonds.
The proceeds will help to fund some infrastructure projects under this year’s spending plan, Senate President Bukola Saraki said during a plenary session Wednesday in the West African nation’s capital, Abuja. It also approved raising a separate $82.5 million to refinance the balance from a previous $500 million Eurobond that’s matured.
Senators urged the House of Representatives, Nigeria’s lower chamber of parliament, to quickly approve the debt too so that government quickly moves to issue.
Buhari in June signed this year’s 9.1 trillion-naira ($25 billion) budget, the country’s biggest yet, which increases investment in roads, rail, ports and power to boost the economy. The International Monetary Fund forecast Nigeria’s economy will expand 1.9 percent this year following a contraction in 2016.
Some of Nigeria’s Eurobonds reversed their gains after the announcement. Yields on the $1.25 billion of notes maturing in February 2038 rose 3 basis points to 8.35 percent by 2:27 p.m. in London, having earlier been as low as 8.29 percent.