This Week, NSE To List Five FGN’s Eurobonds Worth N5.37bn
The Nigerian Stock Exchange has revealed plans to list five Federal Government of Nigeria’s Eurobonds valued at N5.37bn this week.
The NSE said in a statement on Tuesday that the Eurobonds would be listed on the Exchange on Thursday.
The statement read in part, “In all, five tranches of Eurobonds will be listed on Thursday. They are a 7.143 per cent 12-year $1.25bn FGN Eurobond; 7.696 per cent 20-year $1.25bn FGN Eurobond; 7.625 per cent, seven-year $1.118bn FGN Eurobond; 8.747 per cent 12-year $1bn FGN Eurobond and 9.248 per cent 30-year $750m Eurobond.
“The Eurobonds will be listed under the auspices of Nigeria’s newly established Global Medium Term Note programme.”
The NSE said the listing was in line with the Federal Government’s drive to rebalance the country’s debt portfolio, following the Debt Management Office’s 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.
It said the Eurobond issuances were expected to spur private sector participation in the Nigerian capital markets as domestic investors stood to gain increased access to instruments in the secondary markets and a widened opportunity for portfolio diversification.
The NSE added that the listing would bring the FGN Eurobonds listed on the bourse to a total of eight.
It said, “The listing of the Eurobonds will also facilitate the inflow of foreign investment from international fund managers seeking to diversify their portfolios from both asset class and geographical perspectives, augment the domestic savings base and is ultimately expected to lead to more sustainable growth and development of the economy.”
According to the statement, the five-tranche listing of the FGN Eurobonds comes on the trail of recent Federal Government bonds listed on the Exchange, including N10.69bn five-year Federal Government Sovereign Green Bond at coupon rate of 13.48 per cent in July 2018 and the N100bn, seven-year, Federal Government Ijarah Sukuk with a rental rate of 16.47 per cent on April 10, 2018.