Breaking: Nigeria’s $1bn Eurobond Begins Trading On London Exchange

Nigeria’s 15-year $1 billion Eurobond, the longest ever maturity for an international Nigerian issuance since 2013, started trading on the London Stock Exchange Thursday, February 16, 2017.
According to a statement by Mohan Bhuyan, Communications Consultant – India, Middle East & Africa of the LSE Group, the offer which was nearly eight times oversubscribed, reaching approximately $7.7 billion, highlighted strong international investor demand, demonstrated confidence in Nigeria’s economy, by high quality investor support from across the US and Europe.
The bond, with a coupon of 7.875%, is part of efforts to help the President Muhammadu Buhari administration finance Nigeria’s long term infrastructure projects.
Bhuyan added that the listing builds on the recent pipeline of several high profile sovereign, supranational, municipal and private company bond issuances on London Stock Exchange. In January 2017, Israel listed its largest ever Eurobond offering of €2.25 billion in London.
The statement quoted Ibukun Adebayo, International Markets Unit – Head of Middle East, Africa and South Asia, London Stock Exchange as saying that “Nigeria’s choice of (LSE) for its first international bond offering since 2013 underlines London Stock Exchange’s position as a leading global venue for debt fund raising and London’s enduring status as a market open to the world.
“The success of Nigeria’s bond listing is a strong statement of international investor interest in building exposure to Nigeria’s economy. It reinforces London Stock Exchange’s status as a strong partner to Nigeria and the City’s ability to provide a deep additional channel of finance for the development of Nigerian infrastructure and the growth of the economy.”
On his part, Simon Kirby, Economic Secretary to the Treasury, expressed delight “that the Nigerian government has chosen London as the location to list its $1bn sovereign bond. This issuance underlines Britain’s position as the world’s leading global financial centre and strengthens our economic and financial relationship with Nigeria.”
The statement added that Nigeria’s Eurobond brings to nine, the number of African sovereign bonds listed in London. Others include: Gabon, Ghana, Nigeria and Zambia, in addition to 111 African companies listed or trading on the bourse, more than on any other international stock exchange.

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