Request for Proposal at Debt Management Office (DMO)
Debt Management Office Nigeria
Request for Proposal for Co – Arrangers for Federal Government of Nigeria Bonds to Be Issued in the International Capital Market
1.0 Introduction
The Debt Management Office (DMO), on behalf of the Federal Republic of Nigeria (“FRN or Government”) seeks to issue Federal Government of Nigeria Bonds (“FGN Bonds”, “Bonds” or “Offering”) for an amount up to N80 billion in the International Capital Market in the form of Global Depository Notes for which a Sole Depository Bank and Arranger has been appointed by the Government. The DMO wishes to appoint an international bank and a Nigerian bank to act as
Co -Arrangers for the Offering. The Co – Arrangers, will be appointed separately by the FRN, but will be required to work together to ensure a successful Offering.
The Global Depository Notes will be documented under Rule 144A/Reg S and will be listed on one of the European Stock Exchanges.
2.0 Scope of Work
The Co – Arrangers shall be expected to render the following services:
a) Collaborate with the DMO and other Transaction Parties in the preparation of the Offering Memorandum and other documents to be submitted to relevant regulators in other jurisdictions as may be required;
b) Liaise with regulators in the International Capital Market as may be required, to ensure that the Offering and related documents comply with all relevant laws and regulations;
c) Market the Offering to potential investors including delivering the Offering Memorandum to prospective investors;
d) Collaborate with the other Transaction Parties to prepare Investor Presentations and other marketing materials that may be required;
e) Collaborate with other Arrangers in managing the syndication process to ensure the success of the Offering;
f) Arrange Conference calls between the DMO and potential investors in the Bonds as may be required; and,
g) Provide any other service that may be required for the successful issuance of the Bonds.
3.0 Request for Proposal Procedures
Proposals must be prepared in the English Language and Bids are to be submitted separately by interested Bidders. Joint Bids would not be allowed. All Bidders are to further note the following:
a) The responses to this Request For Proposal should be submitted in two separate sealed envelopes each in seven (7) copies, as set out below:
1. The Technical Bid which should be submitted in hard copy.
2. The financial Bid which should be submitted in hard copy.
b) Electronic submissions will not be accepted;
c) Bidders should ensure that their Bids are duly acknowledged by the DMO at the time of submission;
d) All Bids are to be submitted to the following address:
Director General,
Debt Management Office,
The Presidency, First Floor,
NDIC Building, Plot 447/448, Constitution Avenue,
Central Business District,
Abuja, Nigeria.
e) All Bids must be received by 12.00 noon (Nigeria Time) on October 3, 2013. The DMO reserves the right to reject any proposal not received by this time and in the form prescribed by this Request For Proposal;
f) The Technical Bids will be opened at 1.00 p.m. on October 3, 2013. In accordance with the provisions of the Public Procurement Act, 2007, Bidders are expected to be represented at the opening of Bids;
g) All Bidders will be notified within (2) working days of the Bid Opening through electronic or physical mails if their Bids were accepted for further evaluation or rejected;
h) Bidders whose Bids are accepted for further evaluation will be invited for Interviews at a date and venue to be advised by the DMO;
i) Bidders who are unsuccessful after the evaluation of their Technical Bids will be advised within two (2) working days of the evaluation;
j) The Financial Bids will be opened once a shortlist of prospective Financial Advisers has been compiled on the basis of the evaluation of Technical BJds and the Interviews; and,
k) The Financial Bids of all the unsuccessful Bidders will be returned un-opened to their respective addresses.
4.0 Requirements for the Technical and Financial Bids
Technical Bid
The Technical Bid should contain the following in the minimum:
a) Company profile, including registered address and contact email address;
b) Evidence of registration with relevant regulatory authorities in the Domestic market (for Nigerian banks) and International Capital Market (for international banks);
c) For the International Bank:
- List of major international financial centres in which it has presence;
- Minimum of two investment grade ratings from internationally recognised rating agencies;
d) For the Nigerian Bank:
i. List of countries other than Nigeria where the bank is present, indicating if they are full – fledged banks or Representative Offices;
ii. Minimum of two credit ratings not below BB- or its equivalent from internationally recognised rating agencies or rating agencies registered with the Securities and Exchange Commission, Nigeria;
e) Verifiable track record over the past five (5) years:
i. International Bank
Information on instances in which they acted as Lead Managers, Arrangers or in any other capacity for the issuance of local currency denominated securities by a sovereign in the International Capital Markets which should include specific references to any previous participation in a GDN Issuance. Information on Eurobond Transactions or Global Depository Receipts in which the firm provided service may be useful;
ii. Nigerian Bank
Information on transactions in which they acted as Lead Managers, Advisers or in any other capacity, in the domestic or international markets;
f) Information on any financial advisory or other services rendered to the Government of Nigeria; and,
g) A Marketing Strategy and Plan in not more than five (5) pages (Power Point) showing how the bank will ensure the successful issuance of the FGN Bonds in GDN format in a timely manner.
Financial Bid
Bidders should provide a quote for the Fees and any applicable Expenses that they would require to be paid for the service to be rendered as Co – Arrangers for the FGN Bonds in GDN Format. The quote, which should be in United States Dollars in the case of the international bank and in Nigerian currency (Naira) for the Nigerian bank, will be subject to all applicable Nigerian taxes.
Bidders should note that:
a) The cost for any party that may be engaged by them towards the discharge of their function as Co – Arranger, shall be for their own account.
b) The actual Fee and Expenses to be paid may be subject to negotiation at the discretion of the FRN.
5.0 Enquiries
Prospective Bidders that require clarification on any part of this Request for Proposal may wish to direct requests to: enquiries@dmo.gov.ng
Important Notices
a) Nothing in this advertisement shall be construed to be a commitment on the part of the DMO to appoint Co – Arrangers or to issue FGN Bonds in GDN Format; nor shall it entitle any Bidder to make any claim whatsoever and seek indemnity from the DMO by virtue of the Bidder having responded to this Request for Proposal.
b) No costs associated with responding to this Request for Proposal or attending Interviews will be reimbursed.
c) The information contained herein shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the FGN Bonds in GDN Format referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction.
Debt Management Office
The Presidency,
Plot 447/448, Constitution Avenue,
Central Business District,
P.M.B. 532 Garki, Abuja, Nigeria
Email: enquiries@dmo.gov.ng
Website: www.dmo.gov.ng
