Case History – Debt Management


Case Study

Following intensive consultations with Nigeria’s Debt Management Office, the firm developed a capital‐markets based strategy to minimize the cost of servicing N92 billion (i.e. USD 717 million) in capitalized arrears relating to goods and services supplied by contractors to the Federal government.

Implemented precisely three months after Rhombus’ presentation to the Director‐General, the Rhombus strategy recommended achieved following spectacular results:

  • Slashed the interest rate payable on relevant liability by 400 b.p., generating annual savings of N13.7 billion (i.e. USD 29 million);
  • Realized cumulative savings, in present‐value terms, of N13.7 billion (then equivalent to USD 107 million).
  • Helped promote a more efficient pricing of risk and return in the domestic bond market, then still in its infancy.