The federal government on Thursday announced that it has priced its $2.86bn Eurobonds offerings with over subscription from global investors.
The Eurobond was offered in triple series Notes under the FGs global medium term note programme.
The offering has attracted significant interest from leading global institutional investors with a peak combined order book of over $9.5 billion, which reflects an over-subscription of more than 3 times and demonstrates the on-going confidence of international capital market investors in Nigeria’s investment story, a statement from the Paul Ella Abechi, the Special Adviser to the Minister of Finance (Media & Communications) said in a statement.
The statement explained that the “notes comprise a $1.18bn 7-year series, $1.00bn 12-year series and a $750 million 30-year series.
It explained further that “the 7-year series will bear interest at a rate of 7.625 per cent, while the 12-year series will bear interest at a rate of 8.75 per cent, and the 30-year series will bear interest at a rate of 9.25 per cent. In each case, they will be repayable with a bullet repayment of the principal on maturity.”
“The offering is expected to close on or about 21 November 2018, subject to the satisfaction of various customary closing conditions” it said adding that Nigeria “intends to use the proceeds of the Notes towards funding of the fiscal deficit and other financing needs.”
The Notes represent Nigeria’s sixth Eurobond issuance, following issuances in 2011, 2013, two in 2017 and one in early 2018 and its first triple-tranche offering.
When issued, the Notes will be admitted to the official list of the UK Listing Authority and available to trade on the London Stock Exchange’s regulated market. Nigeria may apply for the Notes to be eligible for trading and listed on the Nigerian FMDQ OTC Securities Exchange and the Nigerian Stock Exchange.
The statement noted that the “pricing was determined following a series of meetings with investors in London and conference calls with investors globally attended by the Nigerian delegation, which comprised the Minister of Finance, Zainab Shamsuna Ahmed, the Minister of Budget and National Planning, Senator Udoma Udo Udoma, Central Bank Governor, Godwin Emefiele, Director General of the Debt Management Office (DMO), Patience Oniha, and Director General of the Budget Office of the Federation, Ben Akabueze.
“The Joint Lead Managers for the issuance were Citibank Global Markets Limited and Standard Chartered Bank and the financial advisors were FSDH Merchant Bank Limited.”