NiNBET, NSIA sign $350m Eurobond facility management agreement

The Nigerian Bulk Electricity Trading Plc (NBET) and the Nigeria Sovereign Investment Authority (NSIA) on Thursday signed a funds management agreement for the $350 million allocated to NBET from the $1 billion Eurobond issued by the Federal Government in July 2013.

The money is part of the $550 million earlier earmarked by the Federal Government in which $200 million is for gas to power project.

While acknowledging the management competence of NSIA, analysts said on Thursday that the money plus the accrued interest is expected to deepen and further develop the electricity market when NBET commences operation soon.

Rumundaka Wonodi, the managing director and chief executive officer of NBET, said, “NBET is happy with this arrangement that allows a competent fund manager like NSIA manage NBET’s Eurobond facility in a manner that yields the required returns yet allows the funds to be readily available for any required bulk trader interventions. With this arrangement, NBET can focus on developing the electricity market and catalysing much needed investments in the power sector.”

Also speaking at the signing ceremony, Uche Orji, managing director and chief executive officer of NSIA, stated, “NSIA is pleased to enter into this asset management arrangement with NBET. It is our aim to bring our proven capabilities in profitable asset management to bear for the benefit of NBET and the Nigerian power sector in general.”