The Nigerian government said on Monday that it successfully priced $2.2 billion 6.5 and 10-year Eurobonds expected to mature in 2031 and 2034 in the international capital markets.
With about $700 million and
$1.5 billion placed in the 2031 and 2034 maturities, respectively,the Notes were priced at a Coupon and Re-offer Yield of 9.625 percent and 10.375 percent, respectively.
The Debt Management Office (DMO) said apart from Nigerian investors, a wide range of investors from multiple jurisdictions, including the United Kingdom, North America, Europe, Asia, and Middle East were attracted to the bond.
This, the debt agency noted,
was an expression of continued investor confidence in
the Nigeria’s sound macro-economic policy framework and prudent fiscal and monetary management.
Also, the DMO dosclosed that the transaction, which attracted a peak orderbook of more than $9billion, underscores the
strong support across geography and investor class.
With respect to investor
class, the DMO said demand came from a combination of Fund Managers, Insurance and Pension Funds, Hedge Funds, Banks and other Financial Institutions.
Nigeria mandated Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan and Standard Chartered Bank as Joint Bookrunners, while FSDH Merchant Bank Limited acted as Financial Adviser on the issuance.
The Minister of Finance and
Coordinating Minister of the Economy, Wale Edun, said the
successful issuance of the bond was a confirmation of the increasing confidence in ongoing efforts of the government to stabilize the Nigerian economy and position it on the path of sustainable and inclusive growth for the benefit of all Nigerians.
“The broad range of investor appetite to invest in our Eurobonds is encouraging as we continue to diversify our funding sources and deepen our engagement with the international capital markets,” Edun said.
The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, said “the outcome of the transaction underscores the growing confidence of investors and the resilience of the Nigeria credit, and evidence of the country’s improved liquidity position and continued access to international markets to
support the financing needs of the government”.
The Director-General of the DMO, Patience Oniha said
“With the successful pricing of the Notes on intra-day basis, Nigeria has registered a landmark achievement in the international capital market. The size of the Orderbook at approximately 4.18 times of the offer amount, and the strong and diverse investor base helped to price the new 6.5-year at 9.625 percent, while new 10-year Notes was priced at 10.375 percent.
Oniha said the DMO remained committed to maintaining transparency and open communication with investors and stakeholders and
appreciates the continued confidence and support of the international and Nigerian investors who participated in the transaction.
The DMO confirmed the Notes would be admitted to the official list of the UK Listing Authority and available to trade on the London Stock Exchange’s regulated market, the FMDQ Securities Exchange Limited
and the Nigerian Exchange Limited.
The proceeds from this Eurobond issuance would be used to finance the 2024 fiscal deficit and support the government’s budgetary needs.
