Nigeria Update: NSE set to list 30-year FGN Eurobond

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Nigeria Update: NSE set to list 30-year FGN Eurobond

The Nigerian Stock Exchange (NSE), will on Thursday, March 7, list 5 tranches of the Federal Government (FGN) Eurobond. They include; 7.143%, 12-Year, $1.25billion FGN Eurobond; 7.696%, 20-Year, $1.25billion FGN Eurobond; 7.625%, 7-Year, $1.118billion FGN Eurobond; 8.747%, 12-Year, $1billion FGN Eurobond; and 9.248%, 30-Year, $750million Eurobond under the auspices of Nigeria’s newly established Global Medium Term Note programme.

A statement from the Exchange yesterday, said the listing is 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, respectively.

These 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 a widened opportunity for portfolio diversification, as this listing will bring FGN Eurobonds listed on the bourse to a total of eight.

It will also 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, 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 N10.69billion, five-year, Federal Government Sovereign Green Bond at coupon rate of 13.48% in July 2018, and the N100billion, seven-year, Federal Government Ijarah Sukuk with a rental rate of 16.47% on Tuesday, April 10, 2018.

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