FG lists $3bn eurobond in three tranches

The federal government, on Tuesday, listed its $3 billion eurobond in three tranches for investors, offering up to 8.6 percent for a 30-year tenor.

Eurobond issuances are debt instruments denominated in a different currency than the local one of the country where the bond is issued.

Last week, the federal government announced plans for the eurobond issuance at the international capital market (ICM) — and tapped local investors to participate for the first time.

“Through the eurobond issuance, Nigeria is expected to raise up to $3 billion but no more than $6.2 billion,” the Debt Management Office (DMO) had said, in a statement.

“The issuance for which all statutory approvals have been received is for the purpose of implementing the New External Borrowing in the 2021 Appropriation Act. Proceeds are for the financing of various projects in the Act.”

The federal government had appointed JP Morgan, Chapel Hill Denham and six others as transaction advisers for the issuance.

According to Reuters, the offering will be issued next week in tranches of three tenors — a seven-year at 6.5 percent, a 12-year bond at 7.75 percent and a 30-year at up to 8.625 percent.

The news agency quotes a notice to investors and September 28 is set for the bond settlement.

The bond will be listed on the London and Nigerian Stock Exchanges.

The eurobond is part of the federal government’s borrowing plans to finance part of the 2021 budget deficit.