Standard Chartered completes N12bn IFC’s Naija bond

BY PETER EGWUATU

Standard Chartered Bank, weekend announced that it has successfully completed a NGN 12.0 billion (USD76 million equivalent) Senior Unsecured Fixed Rate Notes issuance( Naija Bond) due 2018 for the International Finance Corporation (“IFC”).

The Bank in a statement made available to Vanguard, said it is a landmark transaction, achieving a number of significant milestones, including being the first onshore issuance in the Nigerian Naira market by an international issuer and the lowest spread achieved for an onshore issuance in the Nigerian Naira market.

Commenting on the bond, Bola Adesola, Chief Executive Officer of Standard Chartered Bank Nigeria Limited, said “We are excited to be part of this landmark transaction which breaks the glass ceiling in capital markets dealing for Nigeria. We believe this is a turning point for domestic growth and development in our local economy”.

Standard Chartered Bank is the Lead Issuing House and Lead Bookrunner for this bond. Proceeds from the bond will be used by the IFC to support its private sector development program.. Chapelhill Advisory Partners were Joint Lead Issuing House and Joint Bookrunner on the transaction.

The IFC Naija bond was issued to support Nigeria’s domestic capital markets, increase access to local-currency finance and target investors such as pension funds, insurers, asset managers and banks seeking to diversify their respective portfolios. IFC is rated triple-A by Moody’s Investors Service and Standard & Poor’s

Solomon Adegbie-Quaynor, IFC Country Manager for Nigeria added: “The IFC Naija bond will support the government’s efforts to deepen domestic capital markets in Nigeria. It will also help pave the way for other issuers in the domestic markets and make available funds that can be put to work in the local economy.

The IFC Naija bond was issued by IFC in collaboration with the Nigerian government, regulatory authorities and market participants. IFC’s committed portfolio in Nigeria currently stands at $1.1 billion, the largest country portfolio in Africa and the eighth-largest globally.

Jingdong Hua, IFC Vice President and Treasurer said “The IFC Naija bond will be a milestone achievement as we continue to work with governments and local authorities to strengthen domestic capital markets in the region.”