The senate has approved the Federal Government’s request to borrow $500 million out of the $1 billion Eurobond from the International Capital Market (ICM).

This was after it was put to a voice vote at the committee of the whole on Wednesday.

Vice President Yemi Osinbajo had written to the National Assembly requesting approval for the loan to fund the 2016 budget deficit on February 22.

“The external borrowings incurred to date consist of USD 600 million from the African Development Bank and USD 1 billion Eurobond from the International Capital Market (ICM) only,” the letter read.

“Thus, based on the 2016 appropriation and applying the average exchange rate, there is headroom to access further international funds.

“Following the high over subscription of the recent USD 1 billion Eurobond issuance, we wish to take advantage of favourable market conditions to issuance of Eurobond debt instrument of USD 500 million to fund the implementation of the 2016 budget, which is still ongoing.”

Azeez