Five tranches of the Federal Government Eurobond will be listed on the Nigerian Stock Exchange on Thursday, March 7, 2019. The five tranches to be listed include:

  • The 7.143%, 12-Year, $1.25billion FGN Eurobond
  • The 7.696%, 20-Year, $1.25billion FGN Eurobond
  • The 7.625%, 7-Year, $1.118billion FGN Eurobond
  • The 8.747%, 12-Year, $1billion FGN Eurobond and
  • The 9.248%, 30-Year, $750million Eurobond.

According to a statement by the Nigerian Stock Exchange, the bonds will be listed under the auspices of Nigeria’s newly established Global Medium Term Note programme.

The bond-listing is in line with the Government’s drive to re-balance Nigeria’s debt portfolio. The move follows earlier efforts by the Debt Management Office, specifically the issuance of five Eurobonds in 2018 – a dual tranche that was issued in February, and a triple tranche that was issued in November 2018.

The move is expected to encourage the private sector

According to the NSE, the listing of the bonds will encourage private sector participation in the Nigerian capital markets, even as domestic investors stand to gain increased access to instruments in the secondary markets.

The bond listing is also expected to widen the opportunity for portfolio diversification. This is because the listing will bring FGN Eurobonds listed on the bourse to a total of eight.

Foreign Investment

Nairametrics learnt that the listing will also facilitate the inflow of foreign investment from international fund managers seeking to diversify their portfolios from both asset class and geographical perspectives. The inflow of foreign investment will, in turn, augment Nigeria’s domestic savings base, and ultimately lead to more sustainable growth and development of the country’s economy.

Previous bonds listed

Recently, the Federal Government listed bonds on the Exchange which included the N10.69billion, five-year, Federal Government Sovereign Green Bond at coupon rate of 13.48% in July 2018, and the N100billion, seven-year, Federal Government Ijarah Sukuk which had a rental rate of 16.47%.

Meanwhile, Nigeria is among top 5 best-performing Eurobonds in 2019

As we reported ealier, Nigeria is among the top five countries with the best performing Eurobond market in the world.

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