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Updated · Bloomberg · Jun 26Nigeria Draws $1.5 Billion From $5 Billion UAE Bank Swap
1 articles · Updated · Bloomberg · Jun 26Summary
- $1.5 billion was drawn by Nigeria in recent weeks as the first tranche of a $5 billion total return swap with First Abu Dhabi Bank.
- The drawdown advances a derivatives transaction that has faced scrutiny over its opacity, with details emerging through people familiar with the deal.
- First Abu Dhabi Bank is the UAE's largest lender, making the swap a significant external financing channel for the West African nation.
Insights
Does Nigeria's new loan secretly demote its existing international bondholders? Could Nigeria's $5 billion 'hidden debt' deal trigger a sudden financial crisis? How was Nigeria's risky $5 billion deal rushed through parliament in just one day?