Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Business News

Federal Government raises $2.86 billion from Eurobond

Onome Ohwovoriole by Onome Ohwovoriole
November 16, 2018
in Business News, Politics
Zainab Ahmed, Pres. Buhari to review Finance Bill, tax reform yearly to finance budget , FG to raise $219 million from sales of power firms
Share on FacebookShare on TwitterShare on Linkedin

In a notice posted on its website, the Debt Management Office (DMO) has announced Nigeria’s successful raise of $2.86 billion through its latest Eurobond.

This is the country’s sixth Eurobond issue following its maiden debut in 2011, issuances in 2013, two in 2017, and one issued in February this year.

The Joint Lead Managers for the issuance were Citibank Global Markets Limited and Standard Chartered Bank, while FSDH Merchant Bank Limited was financial advisors.

RelatedPosts

Dollar Scarcity: Nigeria’s Eurobond trade at worst price in years

Debt Management Office lists $1.25 billion Eurobond on NGX, FMDQ

How much was raised?  

The bonds comprise of a US$1.18 billion 7-year series, US$1.00 billion 12-year series and a US$750 million 30-year series. The 7-year series will bear interest at a rate of 7.625%, while the 12-year series will bear interest at a rate of 8.75%, and the 30-year series will bear interest at a rate of 9.25%.

The offer also marks Nigeria’s first triple tranche offering.

News continues after this ad


Rates are higher 

While the DMO stated that the bonds attracted significant interest from leading global institutional investors with a peak combined order book of over US$9.5 billion which reflects an over-subscription of more than 3 times, rates were much higher, partly as a reflection of the elevated macroeconomic risk and the US tightening interest rates.

The $2.5 billion issue raised in February comprising a $1.25 billion 12-year series and a $1.25 billion 20-year series was raised at interest rates of 7.143% and 7.696% respectively.

What will the proceeds be used for?  

Minister of Finance, Zainab Ahmed disclosed that proceeds of the issue will be used to fund capital projects.

News continues after this ad


“The proceeds of this issuance will provide critical financing for projects in transportation, power, agriculture, housing, healthcare and education as well as the capital elements of our social investment programMEs.”

What is a Eurobond?  

Eurobonds are bonds that are issued in a currency other than that of the sovereign nation (in this case, Nigeria).

Lower interest rates and a desire to reduce the crowding out effect of the Federal Government in the country’s debt market have led to an increase in foreign debt issuance.

Related

Tags: EurobondFederal Government of Nigeria

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

inq
avatrade
Stanbic bank
Mega Millions
UBN
Hot forex
Access Bank
Bankers Committee
First bank






    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Benin DisCo says forceful takeover causing company monthly loss of N750 million
    • Dangote Major Driver of Real Estate Development – Builders
    • Kenyan Shilling plunges against dollar since William Ruto’s victory

    Follow us on social media:

    Recent News

    Benin DisCo says forceful takeover causing company monthly loss of N750 million

    Benin DisCo says forceful takeover causing company monthly loss of N750 million

    August 17, 2022
    Dangote Major Driver of Real Estate Development – Builders

    Dangote Major Driver of Real Estate Development – Builders

    August 17, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com