Nume Ekeghe with agency reports
Nigeria has accessed the first tranche of a proposed $5 billion derivatives financing arrangement with the United Arab Emirates’ largest lender, according to a Bloomberg report, marking the first reported drawdown under a facility that has attracted scrutiny over its structure and transparency.
Bloomberg reported that Nigeria drew about $1.5 billion over the past two weeks through a Total Return Swap (TRS) transaction with First Abu Dhabi Bank PJSC, citing people familiar with the deal who requested anonymity because they were not authorised to speak publicly.
According to Bloomberg, “Nigeria has accessed the first tranche of a $5 billion derivatives deal with United Arab Emirates’ largest lender, pressing ahead with a transaction that has been scrutinized for being opaque.
“The West African nation drew about $1.5 billion in the last couple of weeks from a total return swap transaction with First Abu Dhabi Bank PJSC, according to people familiar with the transaction, who asked not to be identified because they aren’t authorised to speak to the media.”
