Fed Govt Lists $1b Eurobond On FMDQ OTC
The federal government listed its $1 billion Eurobond on the FMDQ OTC Securities Exchange, creating additional platform for the trading on the foreign-currency sovereign bond issue after the initial listing on the Nigerian Stock Exchange (NSE).
The Debt Management Office (DMO), which oversees the issuance of Nigeria’s government debt issues, listed the $1 billion Eurobond on behalf of the government.
The $1 billion Eurobond has a tenor of 15 years with redemption in 2032 and a coupon rate of 7.875 per cent. The issue was oversubscribed by 780 per cent, prompting the government to set in motion process for a supplementary issue of $500 million.
At the listing in Lagos, the director-general, DMO, Dr. Abraham Nwankwo, said the Eurobond was listed on the domestic Exchanges to enable Nigerians, individuals and corporate bodies, access the Eurobond at their doorsteps.
He added that the Eurobond would set the pace for global competitiveness and invariably deepen the Nigerian financial markets, noting that the issuance of the Eurobond was aimed at fostering economic development and rejuvenating the vibrancy of the nation’s foreign exchange market.
Nwankwo urged Nigerians to continue to support the government as it works tirelessly with all stakeholders to transform the economy through infrastructure development.
Also, the chairman of FMDQ, Dr. (Mrs.) Sarah O. Alade, who was represented by the vice chairman of FMDQ, Mr. Jibril Aku, noted that this move by the federal government to list on a domestic exchange will rightly position the nation to maximise its potential via the debt capital market.
He said that in line with FMDQ’s vision for the transformation of the markets, the OTC Exchange, since its debut onto the Nigerian financial markets landscape, already granted permitted trading status for $1.50 billion of the previously issued FGN Eurobonds and $3.15 billion of Eurobonds issued by Nigerian companies, ensuring price formation and providing information transparency to protect investors interests.
While the CEO of Stanbic IBTC Capital Limited, Mr. Yinka Sanni, lauded the efforts of the DMO in achieving this milestone transaction, saying, “This is indeed a testament to international investor confidence in Nigeria’s roadmap towards economic recovery and growth.”
According to Sanni, we are pleased to sponsor the quotation of this Eurobond on FMDQ’s platform.
“We believe this is yet another commendable step by FMDQ towards deepening the domestic debt capital markets, by enhancing access of local investors to internationally traded securities.”
Also, the director-general of Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo, reassured that the Commission would continue to provide the needed environment for the capital market to grow.
