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Nigeria's US$1 billion Eurobond was 780 per cent oversubscribed, demonstrating a strong market appetite for Nigeria
The federal government on Thursday revealed that the newly established US$1 billion Global Medium Term Note programme will bear interest at a rate of 7.875 per cent to mature on 16th February 2032, with a bullet repayment of the principal.
Nigeria intends to use the proceeds of the notes to fund capital expenditure in the 2016 budget.
Statement released by the Director Information in the Ministry of Finance, Mr. Salisu Na’inna Dambatta said: “The development was clearly a sign of renewed confidence in the economy which has been hurt by the slump in crude oil prices.”
The notes, according to a statement last night, represented the country’s third Eurobond issuance, following issuances in 2011 and 2013.
“The notes were approximately eight times oversubscribed with orders in excess of US$7.8 billion compared to a pre-issuance target of US$1 billion, demonstrating strong market appetite for Nigeria.
“This is despite continued volatility in emerging and frontier markets and it shows confidence by the international investment community in Nigeria’s economic reform agenda.
“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 statement said.
In addition, the federal government will apply for the notes to be eligible for trading and listed on the FMDQ OTC Securities Exchange and the Nigerian Stock Exchange.
The pricing was determined following a roadshow led by the Minister of Finance, Mrs. Kemi Adeosun; Minister of Budget and National Planning, Senator Udoma Udo Udoma; Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele; Director General of the Debt Management Office (DMO), Dr. Abraham Nwankwo; and Director General of the Budget Office, Mr. Ben Akabueze.
The federal government on Thursday revealed that the newly established US$1 billion Global Medium Term Note programme will bear interest at a rate of 7.875 per cent to mature on 16th February 2032, with a bullet repayment of the principal.
Nigeria intends to use the proceeds of the notes to fund capital expenditure in the 2016 budget.
Statement released by the Director Information in the Ministry of Finance, Mr. Salisu Na’inna Dambatta said: “The development was clearly a sign of renewed confidence in the economy which has been hurt by the slump in crude oil prices.”
The notes, according to a statement last night, represented the country’s third Eurobond issuance, following issuances in 2011 and 2013.
“The notes were approximately eight times oversubscribed with orders in excess of US$7.8 billion compared to a pre-issuance target of US$1 billion, demonstrating strong market appetite for Nigeria.
“This is despite continued volatility in emerging and frontier markets and it shows confidence by the international investment community in Nigeria’s economic reform agenda.
“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 statement said.
In addition, the federal government will apply for the notes to be eligible for trading and listed on the FMDQ OTC Securities Exchange and the Nigerian Stock Exchange.
The pricing was determined following a roadshow led by the Minister of Finance, Mrs. Kemi Adeosun; Minister of Budget and National Planning, Senator Udoma Udo Udoma; Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele; Director General of the Debt Management Office (DMO), Dr. Abraham Nwankwo; and Director General of the Budget Office, Mr. Ben Akabueze.
