The Nigerian Stock Exchange (NSE) announced it will list 5 tranches of the Federal Government (FGN) Eurobond on March 7, 2019.
The Eurobonds include: 7.143 percent, 12-Year, $1.25billion FGN Eurobond; 7.696 percent, 20-Year, $1.25billion FGN Eurobond; 7.625 percent, 7-Year, $1.118billion FGN Eurobond; 8.747 percent, 12-Year, $1billion FGN Eurobond; and 9.248 percent, 30-Year, $750million Eurobond.
A statement released by the NSE noted that the listing was in line with the Federal Government’s drive to re-balance Nigeria’s debt portfolio, following the Debt Management Office (DMO’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.
The issuance of the Eurobonds 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. The issuance will also encourage portfolio diversification, as this listing will bring FGN Eurobonds listed on the bourse to a total of eight.
The listing will facilitate the inflow of foreign investment from international fund managers seeking to diversify their portfolios from both asset class and geographical perspectives. It will also augment the domestic savings base, and ultimately is 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, that include 10.69 billion naira, five-year, Federal Government Sovereign Green Bond at coupon rate of 13.48 percent in July 2018, and the 100 billion naira, seven-year, Federal Government Ijarah Sukuk with a rental rate of 16.47 percent listed on Tuesday, April 10, 2018.