FGN Eurobond Launch - 10 year notes at 6.5%, 30-year bonds at 7.625% (Update)

Nigeria is poised to issue its biggest and longest-maturity Eurobond later today, as it plans to sell $3 billion of debt, split equally between 10- and 30-year tranches. The yield was set at 6.5 percent for the shorter notes and 7.625 percent for the 30-year portion, down 25 basis points on each tranche from the initial guidance.
 

Citigroup Inc. and Standard Chartered Plc are managing the transaction. They arranged meetings in London and New York last week between investors and Nigerian officials including Finance Minister Kemi Adeosun and central bank Governor Godwin Emefiele.

Nigeria has tapped the market twice this year already, raising $1.8 billion of notes due in 2022 and 2032. While the OPEC member and Africa’s biggest oil producer is still reeling from its worst economic slump in around 25 years, investors said the new offering will benefit from Brent crude’s 18 percent rise since the end of August to $61.56 per barrel.

Nigeria’s longest dollar bonds mature in 2032. The yield fell two basis points to6.75 percent as of 4:00 p.m. in London. It has dropped more than 120 basis points since the notes were issued in February.

Before today, the most Nigeria had issued in one day was $1.5 billion.



Source: Bloomberg

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