Nigeria’s $1bn Eurobond starts trading on London Exchange
London Stock Exchange has yesterday admitted Nigeria’s $1 billion Eurobond to start trading in London. The 15 year government bond, paying a coupon of 7.875 per cent, is the longest ever maturity for an international Nigerian bond, the first international issuance for the country since 2013.
The offer was nearly eight times oversubscribed, with the order book closing at approximately $7.7 billion compared to a pre-issuance target of US$ 1.0 billion.The listing secured high quality investor support from across the US and Europe and will support Nigeria in financing its long term infrastructure projects.
Yesterday’s listing builds on the recent pipeline of several high profile sovereign, supranational, municipal and private company bond issuances on London Stock Exchange. In January 2017, Israel listed its largest ever Eurobond offering of 2.25 billion in London.
Commenting on development, International Markets Unit, Head of Middle East, Africa and South Asia, London Stock Exchange, Ibukun Adebayo said, “Nigeria’s choice of London Stock Exchange for its first international bond offering since 2013 underlines London Stock Exchange’s position as a leading global venue for debt fund raising and London’s enduring status as a market open to the world.
“The success of Nigeria’s bond listing is a strong statement of international investor interest in building exposure to Nigeria’s economy. It reinforces London Stock Exchange’s status as a strong partner to Nigeria and the city’s ability to provide a deep additional channel of finance for the development of Nigerian infrastructure and the growth of the economy.”
The Economic Secretary to the Treasury, Simon Kirby, said “I am delighted that the Nigerian government has chosen London as the location to list its $1 billion sovereign bond.
“This issuance underlines Britain’s position as the world’s leading global financial centre and strengthens our economic and financial relationship with Nigeria,”he said.
Minister of finance had earlier stated that Federal Government would apply for the Notes to be eligible for trading and listed on the Nigerian FMDQ OTC Securities Exchange and the Nigerian Stock Exchange.