Nigeria Opens Order Book For $3B Eurobond

Nigeria opened the order book for a $3 billion Eurobond offering on Tuesday, aiming to issue the bond next week, according to a notice to investors seen by Reuters.

The country is aiming to issue the debt in tranches of three tenors – a seven-year at a yield of 6.5 percent, a 12-year bond at 7.75 percent and a 30-year at up to 8.625 percent.

The government arranged calls last week and on Monday with global and local investors ahead of the planned issue.

The debt office has said the meetings will precede pricing for the bond to raise up to $3 billion but not more than $6.2 billion.

The notice was set for Sept. 28 for the bond settlement, which will be listed on the London and Nigerian Stock Exchanges.

The Eurobonds are part of a government plan to raise N2.343 trillion ($5.71 billion) in external financing to help fund spending in 2021 and to part finance the N5.6 trillion deficit.

Nigeria picked JPMorgan, Citigroup, Standard Chartered and Goldman Sachs as international bookrunners and local firm Chapel Hill Denham on the forthcoming Eurobond issue.