The Nigerian government on Wednesday announced the issuance of $2.86 billion aggregate triple bond series under its Global Medium Term Note Programme.
A statement released by the Finance Ministry on Wednesday night said the Notes comprise a $1.18 billion seven-year series, $1billion 12-year series and $750 million 30-year series.
Details of the issue show the seven-year series would bear interest at a rate of 7.625 per cent, while the 12-year series would bear interest at a rate of 8.75 per cent, and the 30-year series would bear interest at a rate of 9.25 per cent.
The offering attracted significant interest from leading global institutional investors with a peak combined order book of over $9.5 billion.
The Minister of Finance, Zainab Ahmed, said the successful transaction follows closely behind Nigeria’s successful engagement with the Fitch rating agency, and their subsequent decision to change the outlook on Nigeria’s sovereign rating from B+ (negative) to B+ (stable), based on improving macro-economic fundamentals.
She said despite significant oil and wider macro market volatility, Nigeria has successfully raised its external debt requirements for the 2018 budget at a cost considerably lower than many of its peers across Sub-Saharan Africa.
The statement said the offer, which was more than three times over-subscribed, demonstrates the ongoing confidence of international capital market investors in Nigeria’s investment story.
The minister said each of the issues would be repayable with a bullet repayment of the principal on maturity.
The offering is expected to close on or about November 21, 2018, subject to the satisfaction of various customary closing conditions.
The proceeds of the Notes would be used to fund the fiscal deficit in the 2018 budget as well as other government projects.
“Nigeria is investing strategically in critical capital projects to bridge our infrastructure deficit, provide a better operating environment for the private sector, and improve the standard of living of our citizens,” Ahmed said.
“The proceeds of this issuance will provide critical financing for projects in transportation, power, agriculture, housing, healthcare and education as well as the capital elements of our social investment programmes. Nigeria’s Economic Recovery and Growth plan is delivering results.