Nigeria Announces 7.5 % Yield for its $500M Eurobond

By March 30, 2017 Investment News

Nigeria has announced a 7.5 percent yield for its $500 million Eurobond approved by the National Assembly, last week.

The latest segment is part of the Global Medium Term Note Programme, which will be consolidated and form a single series with the nation’s existing $1 billion Eurobond priced at 7.875 per cent.

According to the Federal Ministry of Finance, in a statement, yesterday, the terms and conditions of the Notes will be identical to those of the Original Notes issued on the 16th of last month. They will be due on February 16, 2032.

According to the statement, signed by the Director of Information, Mr. Salisu Na’Inna Dambatta, “As with the Original Notes, the Republic intends to use the proceeds of the Notes to fund capital expenditures in the 2016 budget.

“The successful pricing, which is priced 37.5bps inside the original coupon rate, demonstrates continued strong market appetite for Nigerian securities. This, despite continued volatility in emerging and frontier markets and shows confidence by the international investment community in Nigeria’s economic reform agenda.

“When issued, the Notes will be admitted alongside the Original Notes to the official list of the UK Listing Authority and to trading on the London Stock Exchange’s regulated market.

“The Republic may apply for the Notes to be eligible for trading or listed on the Nigerian Stock Exchange and Financial Markets Dealers Quotations Over-the-Counter Securities Exchange.”

“The proceeds from this additional note issuance will go towards funding capital projects in the 2016 budget. Infrastructure spending is at the heart of our National Economic Recovery and Growth Plan, which was released earlier this month and guides how we will deliver the urgent reform our economy needs between now and 2020. Resetting the Nigerian economy is essential in order for us to deliver sustainable long-term growth.”

The Director-General of the Debt Management Office (DMO), Dr Abraham Nwankwo, in his comment on the Notes’ pricing said, “Following the success of our US$1 billion note issuance in February, Nigeria is delighted to have increased our 2017 Eurobond programme to US$1.5 billion and to have secured the additional US$500 million.

“Nigeria was keen to take advantage of favourable market conditions and investor appetite for Nigerian debt to complete our foreign borrowing programme for the 2016 budget and deliver further funds for vital capital projects.”

Source: Nigeria Today