…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 proceeds from the Eurobond issuance will be used to finance the 2024 fiscal deficit
TUE DEC 03 2024-theGBJournal|Nigeria’s first Eurobond sale in two years, a US$2.2 billion offer, maturing in 2031 6.5-year) and 2034 (10-year), has been successfully priced with peak order books in excess of US$9 billion.
Both offers, $700 million maturing in 2031 and US$1.5 billion maturing in 2024, priced at a Coupon and Re-offer yield of 9.625% and 10.375% respectively, attracted strong investor demand.
Elated Patience Oniha, the Director General of the Debt Management Office (DMO), confirmed that the size of the Orderbook at approximately 4.18x of the offer amount, and the strong and diverse investor base helped to price the new 6.5-yr at 9.625%, while new 10-year Notes was priced at 10.375%.
Oniha said the successful pricing of the bonds underscores the strong support for the transaction across geography and investor class.
”With respect to investor class, demand came from a combination of Fund Managers, Insurance and Pension Funds, Hedge Funds, Banks and other Financial Institutions.”
According to Oniha with the successful pricing of the Notes on intra-day basis, Nigeria has registered a landmark achievement in the international capital market.
The Debt Management Office (DMO) said 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 FMDQ Securities Exchange Limited and the Nigerian Exchange Limited.
Commenting, following the successful pricing on Monday, the Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, said the successful issuance signposts increasing confidence in ongoing efforts of the President Bola Ahmed Tinubu, GCFR, administration to stabilize the Nigerian economy and position it on the path of sustainable and inclusive growth for the benefit of all Nigerians.
”The broad range of investor appetite to invest in our Eurobonds is encouraging as we continue to diversify our funding sources and deepen our engagement with the international capital markets.”
According to the Governor of the Central Bank of Nigeria, Olayemi Cardoso, “This outcome underscores the growing confidence of investors and the resilience of the Nigeria credit, and evidence of our improved liquidity position and continued access to international markets to support the financing needs of the government”.
The Eurobond offer attracted a wide range of investors from multiple jurisdictions including the United Kingdom, North America, Europe, Asia, Middle East and participation from Nigerian investors, which the Federal Government views as an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management.
The proceeds from the Eurobond issuance will be used to finance the 2024 fiscal deficit and support the government’s budgetary needs.
Nigeria mandated Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan and Standard Chartered Bank as Joint Bookrunners.
FSDH Merchant Bank Limited acted as Financial Adviser on the issuance.
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