FG’s multi-tranche $4bn Eurobonds listed on NGX

Nigerian Exchange Limited (NGX) says the Federal Government of Nigeria (FGN) has listed $4 billion Eurobonds on its platform.

NGX disclosed this on Monday on its official Twitter handle. 

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

The Eurobonds were issued in three tranches of 7 years, 12 years and 30 years, respectively. 

The first tranche worth $1.25 billion would  due by September 2028 at 6.12 percent. 

The second tranche worth $1.50 billion would due by September 2033 at 7.375 percent. 

Also, the third tranche valued at $1.25 billion would due September 2051 at 8.250 percent. 

The bonds were issued through the Debt Management Office(DMO), with Chapel Hill Denham Advisory Limited acting as domestic book runner and FSDH Merchant Bank Limited as the financial adviser.

Last Thursday, the Debt Management Office had also listed the $4 billion Eurobond on the FMDQ Securities Exchange.

The bond, issued in September 2021, was part of fund-raising for the implementation of the 2021 budget. 

“The subscription level for the Eurobond was USD12.2 Billion, making it one of the continent’s most successful financial transactions of 2021. The Eurobond issuance shored up Nigeria’s foreign reserve, led to the appreciation of the Naira and provided significant capital to finance various projects across Nigeria under the 2021 Appropriation Act,” DMO had said.

“The Eurobond will also be listed on the Nigerian Exchange Limited. The listing on these two (2) securities exchanges will enlarge their scope while also providing a diversified pool of financial offerings for investors.”