Stock Exchange to List 30-year FGN Eurobond

  • Stock Exchange to List 30-year FGN Eurobond

The Nigerian Stock Exchange (NSE) will tomorrow list five tranches of the Federal Government (FGN) Eurobond, deepening the sovereign debt market. The new listings will bring FGN Eurobonds listed on the Exchange to a total of eight.

The five Eurobonds include the 7.143 per cent 12-year $1.25 billion FGN Eurobond; 7.696 per cent, 20-year, $1.25 billion FGN Eurobond; 7.625 per cent, seven-year, $1.118 billion FGN Eurobond; 8.747 per cent 12-year, $1 billion FGN Eurobond and 9.248 per cent 30-year, $750 million Eurobond. The Eurobonds were issued under Nigeria’s newly established Global Medium Term Note programme.

The listing is in line with the Federal Government’s drive to re-balance the country’s debt portfolio, following the Debt Management Office’s (DMO) issuance of five Eurobonds in 2018; the dual tranche which was issued in February and subsequently the triple tranche Eurobonds released in November 2018 respectively.

The Eurobond issuances are expected to spur private sector participation in the Nigerian capital markets as domestic investors stand to gain increased access to instruments in the secondary markets and widened opportunity for portfolio diversification.

The Eurobonds are also expected to facilitate the inflow of foreign investment from international fund managers seeking to diversify their portfolios from both asset class and geographical perspectives, augments the domestic savings base.

They are expected to lead to more sustainable growth and development of the economy.

This five-tranche listing of the FGN Eurobonds comes on the trail of recent Federal Government bond listed on the Exchange, including N10.69billion, five-year, Federal Government Sovereign Green Bond at coupon rate of 13.48 per cent in July 2018 and the N100 billion, seven-year, Federal Government Ijarah Sukuk with a rental rate of 16.47 per cent on Tuesday, April 10, 2018.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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