Nigerian government officials have successfully wrapped up sales of the country’s Eurobond, after a 4-city roadshow in the US and UK. Reports reaching Nairametrics suggest the $1 billion 15 year tenor Eurobond was oversubscribed by as much as 7 folds.
This is fantastic news for Finance Minister Kemi Adeosun who has had to deal with issues surrounding her competency having been compared with her predecessor Okonjo Iweala. It is also good news for the embattled CBN Governor, Godwin Emefiele who has had to fight off criticisms of his exchange rate policy, a potential headwind in the success of the road show. It was alleged that his absence in the road show was deliberate.

Although there was initial skepticism around the potential uses of the bond proceed, given the fact that the public haven’t yet seen a comprehensive Economic recovery plan and precise uses of the proceed, Investors however, piled up to have a slice of Nigeria’s debt.
This can be attributed to the fact that yields are very low globally, given the muted growth being experienced all over the world. Nigeria’s Eurobond is attractive given the fact that it offers a yield of more 7.875% in an environment than even offers negative rates.

Following the interest rate environment, Emerging market bonds have held their attractiveness for investors who are always on the look out for yields.

Demand for Nigeria’s Eurobond was as high as $7.9 billion of orders for a $1bn 15 year issue; showing that it was oversubscribed by at least $6.9 billion.

Given this high level of demand displayed by international investors, Analysts are of the opinion that Nigeria should have taken the opportunity to tap more funds from the global markets, stating that raising only $1 billion is inefficient.

However, given the riskiness of Nigerian debt in the light of adverse macro indices and uncertainty around the currency, the Eurobond was priced relatively higher at 7.875%.

Concerns still remain over the potential use of the proceeds, as it may be spent supporting recurrent expenditure, or supporting the Naira.

Source:
http://www.ajayiwrites.com/2017/02/nigerias-1-billion-eurobond.html

We are getting there...


Read more here..

http://www.ajayiwrites.com/2017/02/nigerias-1-billion-eurobond.html

This is like putting a dagger through the heart of haters, the wailing zombies who detest good news about Nigeria.

Liepods, how far na?

George Orwell's 1984.

...

^^ ignore the guy two steps above me, he's definitely high on weed, fresh and uncut.

O ye dry bones (buhari administration) can anything good come other from thee?

Anything that will end recession pls

b

Wow, this shows Mrs Adeosun is really working to restore investor's confidence in the Nigeria economy.

Haters gonna hate anyway.

PassingShot:
This is like putting a dagger through the heart of haters, the wailing zombies who detest good news about Nigeria.

Liepods, how far na?

Shut up, always trying to bring up tribal war. Who told you it's only the igbos that are not happy with the present government?.

Meanwhile the Financial Times of London is implying Buhari is useless dead or Alive.

Buhari and his Rigor mortis administration is DOA.

Another well served meal for those heartless politicians to feed their selfish pockets with....

Igbos can now go and die in hate

Hungry belle no dey understand economics.

Shebi this will help take us out of recession and the hunger in the land?

Too many "bad news" for wailing zombies today already.

Announcement!


This country needs REVOLUTION



SO WE CAN START AFRESH

J

Buha

Chidexter:


Shut up, always trying to bring up tribal war. Who told you it's only the igbo that are not happy with the present government?.

Shut down! I didn't mention Igbo.

Abi you get eye problem?

good news as long as its not from Mr.lai



.to win easy bet9ja dis Saturday....
check my signature ..wasap me for sure games

SexyBabe001:
We are getting there...


Lalasticlala

FTC on your own thread Later you people will be insulting the likes of Patricia Etteh and Daziani Maduekwe.....

We are watching you on 3D...

Please if you understand, kindly explain for us.

Speaking on behalf of those that will shout sai baba, or shame baba. We need to understand before choosing which to shout.

What is good news here? I don't get it. U are borrowing money and u say its good news

2baba next time don joke with Mr bubuyaya..

PassingShot:

Shut down! I didn't mention Igbo.

That one concern you, stop spilling rubbish next time

Great news.. I just hope it'll be efficiently spent.

N

Jacobx007:
What is good news here? I don't get it. U are borrowing money and u say its good news

Bond is different from borrowing. Help yourself instead of wasting away online.

The main difference from the conventional borrowing is that the bond issuer determines the interest rate and tenor whereas the lender in the case of borrowing dictates the repayment conditions.

Wailers over to you

Hope we are not talking about James bond here

Good news, prayers of the Saints shall not go unanswered. Nigeria shall be great.

Is not about being oversubscribed but what impact or effect would have on the common man along the street after the whole exercise.

Don't believe what any of these APC fools tell you....

Call me Hater and face the wrath of Udeme my friend.