BEVERLY HILLS, February 16, (THEWILL) – The Federal Government has announced the offering of US$2.5 billion Eurobond aggregate principal amount of dual series notes (the “Notes”) under its Global Medium Term Note Programme intended for the refinancing of domestic debt.
The Notes comprise a US$1.25 billion 12-year series and a US$1.25 billion 20-year series and is expected to close on or about February 23, 2018, subject to the satisfaction of various customary closing conditions.
The 12-year series will bear interest at a rate of 7.143 per cent, while the 20-year series will bear interest at a rate of 7.696 per cent and, in each case, will be repayable with a bullet repayment of the principal on maturity.
They represent the country’s fifth Eurobond issuance, following issuances in 2011, 2013 and two in 2017 which has attracted significant interest from leading global institutional investors with a peak order book of over US$11.5 billion.
When issued, 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 while there are indications that the government may apply for the Notes to be eligible for trading and listed on the Nigerian FMDQ OTC Securities Exchange and the Nigerian Stock Exchange.
Commenting on the the successful pricing of the offer, the Minister of Finance, Mrs Kemi Adeosun, said: “Nigeria is focused on reducing the cost of our debt portfolio and ensuring we have the optimal mix between domestic and international debt.
“The proceeds of the issuance, which would supplement the issuances we completed in 2017, will be used to re-finance domestic debt, which is high cost and short term, with lower-cost international debt, with a longer tenor.
“We will have a range of Eurobonds in issue, encompassing five-year, 10-year, 12 year, 15 year, 20-year and 30-year bonds, giving investors a full basket of options to participate in.”
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