FG Lists $4bn Eurobond Used To Finance 2021 Budget Deficit On FMDQ

The Federal Government has listed the $4bn Eurobond secured through investors in 2021 on the FMDQ Securities Exchange Limited.

The Debt Management Office last year announced the issuance of a $3bn Euro bond which was oversubscribed by $1bn by investors from America and Asia.

The $4bn would be channeled to finance the projects in the 2021 Appropriation Act, said the Debt Office.

The last time the FG ventured into Eurobond issuance in the International Capital Market was in November 2018.

The Eurobonds have been listed on the London Stock Exchange and FMDQ Exchange.

Based on the FMDQ listing, the tenures are 6.125 per cent $1.25bn for September 2028, 7.375 per cent $1.50bn bond scheduled for September 2033 and 8.250 per cent $1.25bn bond for September 2051.

The admission of the bond into the FMDQ was co-sponsored by Chapel Hill Denham Advisory Limited and FSDH Merchant Bank Limited, both Registration Members (Listings) of the Exchange.

The Director-General, Debt Management Office, Patience Oniha said, “This issuance was one of the largest financial trades in Africa in 2021 and also aligns the objectives of Nigeria’s Debt Management Strategy (2020-2023).

“Investors’ keen interest in the issuance as shown by the Order Book of over $12bn demonstrated confidence in Nigeria’s economy, with bids being received from international investors across Europe, America and Asia as well as robust participation from domestic investors.

“The Eurobonds enabled access to International Capital Markets inflow of foreign exchange and increased External Reserves. DMO achieved this successful outing through the team of International Arrangers, Nigerian Bookrunner, the Financial Adviser and the Legal Advisers.

“The proceeds of the Eurobonds were applied to part-finance the deficit in the 2021 Appropriation Act. The Eurobonds have been listed on the London Stock Exchange and FMDQ Exchange.”

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