FG offers $2.5bn Eurobond, receives $11.5bn book order
The federal government yesterday announced that it has priced its offering of $2.5 billion aggregate principal amount of dual series notes under its Global Medium Term Note Programme.
This successful issuance would help further reduce the cost of government borrowing while maintaining Nigeria’s net debt levels, a statement by the Debt Management Office (DMO) said.
“The Notes comprise a US$1.25 billion 12-year series and a US$1.25 billion 20-year series. The 12-year series will bear interest at a rate of 7.143%, while the 20-year series will bear interest at a rate of 7.696%, and, in each case, will be repayable with a bullet repayment of the principal on maturity,” DMO said.
The offering is expected to close on or about 23 February 2018, subject to the satisfaction of various customary closing conditions.
The federal government said “it intends to use the proceeds of the Notes for the refinancing of domestic debt. The Notes represent the Republic’s fifth Eurobond issuance, following issuances in 2011, 2013 and two in 2017.”
The offering has attracted significant interest from leading global institutional investors with a peak order book of over US$11.5 billion.
“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. The Republic 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 said.
Speaking on the successful pricing, Minister of Finance Mrs Kemi Adeosun said: “Nigeria is focused on reducing the cost of our debt portfolio and ensuring we have the optimal mix of domestic and international debt.”
The DMO Director General, Patience Oniha said: “With the successful pricing of our 5th Eurobond, Nigeria’s status as an Issuer of Eurobonds with a strong and diverse investor base has been further consolidated.”
She said this time Nigeria has priced a new 12-year bond at a yield of 7.143% and a 20-year bond at a yield of 7.696%, both of which are consistent in price with our existing portfolio.