FG’s $1bn euro bond oversubscribed by $7.8bn

The federal government US$1 billion Global Medium Term Notes were approximately 8 times oversubscribed with orders in excess of US$7.8 billion.

The notes issued yesterday will bear interest at a rate of 7.875% and will mature on 16th February 2032 with a bullet repayment of the principal. The Nigerian government intends to use the proceeds of the Notes to fund capital expenditures in the 2016 budget.

A statement from the federal ministry of finance signed by Director Information, Salisu Na’inna said the offering attracted significant interest from leading global institutional investors. 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.

The Nigerian government will apply for the Notes to be eligible for trading and listed on the Nigerian FMDQ OTC Securities Exchange and the Nigerian Stock Exchange.

The pricing was determined following a roadshow led by Mrs. Kemi Adeosun, the Minister of Finance, Senator Udoma Udo Udoma, the Minister of Budget and National Planning, Godwin Emefiele, Governor of the Central Bank of Nigeria, Dr. Abraham Nwankwo, the Director-General of the Debt Management Office (DMO) and Mr Ben Akabueze, the Director General of the Budget Office, to key global financial centres.

Commenting following the successful pricing, the Minister of Finance Mrs Kemi Adeosun said: “Nigeria is implementing an ambitious economic reform agenda designed to deliver long-term sustainable growth and reduce reliance on oil and gas revenues while reducing waste and improving the efficiency of government expenditure.”