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Nigeria raises $2.86bn Eurobond

…orders in excess of $9.5bn

By Emma Ujah, Abuja Bureau Chief

ABUJA—THE federal government has   raised  $2.86  billion Eurobond under its Global Medium Term Note Programme to fund the 2018 budget deficit.

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The transaction was announced by the Special Assistant to the Minister of Finance, Mr. Paul Abechi, in a statement in Abuja, yesterday.

According to him, the offer was oversubscribed by about $9.5 billion, a demonstration of a strong international investors’ appetite for the Nigerian instrument.

The statement read:  “The offering has attracted significant interest from leading global institutional investors with a peak combined order book of over $9.5 billion, which reflects an over-subscription of more than thee times and demonstrates the on-going confidence of international capital market investors in external debt requirements for the 2018 budget at a cost considerably lower than many of its peers across Sub-Sahara Africa.

“The successful transaction follows closely behind Nigeria’s successful engagement with the Fitch rating agency, and their subsequent decision to change the outlook on Nigeria’s sovereign rating from B+ (negative) to B+ (stable), based on improving macro-economic fundamentals.

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“The notes comprise a $1.18 billion 7-year series, $1 billion 12-year series and a $750 million 30-year series. The 7-year series will bear interest at a rate of 7.625 per cent, while the 12-year series will bear interest at a rate of 8.75 per cent, and the 30-year series will bear interest at a rate of 9.25 per cent. In each case, they will be repayable with a bullet repayment of the principal on maturity.

‘The offering is expected to close on or about November 21, 2018, subject to the satisfaction of various customary closing conditions.”


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