In the past week, the Senate approved $1.5bn and €995.0m worth of external loans for the Federal Government. The loans will be provided by the World Bank, Export-Import Bank of Brazil, and Deutsche Bank of Germany, to finance projects in States facing revenue challenges as well as drive mechanization of agricultural processes. In addition, we expect the loans to bolster the nation’s external reserves, providing the CBN with further headroom to manage the current FX liquidity crunch.On pricing, the loan from the World Bank will be broken into two. The first tranche of $750.0m will attract an interest rate of 2.45% with a 25-year tenor and grace period of 5 years. The second tranche of $750.0m has similar maturity terms but carry interest rate of 2.5%.