Nigeria Prices $500m Bond At 7.5% Yield
source: http://www.eyesoflagos.com/2017/03/nigeria-prices-500m-bond-at-75-yield.html

The federal government yesterday announced that it has priced its offering of $500 million aggregate principal amount of notes at a yield of 7.5% under its $1.5 billion (increased from US$1 billion) Global Medium Term Note Programme, which will be consolidated and form a single series with the nation existing $1billion 7.875 per cent per annum.
It would be recalled that the Presidency recently got the approval of the National Assembly to raise additional $500 million Eurobond from the international capital market.
The bonds which were issued on 16 February 2017 will mature on 16 February 2032 and repayable by way of bullet repayment of the principal together with the original ones of $1 billion. The proceeds of the Notes would be used to fund capital expenditures in the 2016 budget, according to the ministry of finance.
The successful pricing, which is priced 37.5bps inside the original coupon rate, demonstrates continued strong market appetite for Nigerian securities, director of information in the ministry of finance of finance, Salisu Na’inna Dambatta.
Despite continued volatility in emerging and frontier markets and shows confidence by the international investment community in Nigeria’s economic reform agenda.
When issued, the Notes will be admitted alongside the Original Notes to the official list of the UK Listing Authority and to trading on the London Stock Exchange’s regulated market. Nigeria however have to apply for eligibility of the bond for trading or to be listed on the Nigerian Stock Exchange and Financial Markets Dealers Quotations Over-the-Counter Securities Exchange.
Pricing of the Notes comes shortly after the federal government launched its National Economic Recovery and Growth Plan 2017-2020 on 7 March 2017, which focuses on policy objectives in five core areas: macroeconomic policy, economic diversification and growth drivers, competitiveness, social inclusion and jobs, and governance and other enablers. Key targets of the NERGP include reaching single-digit inflation, further growth in the agricultural sector, reducing unemployment, increasing operational energy capacity and domestic refining capacity, improving transportation infrastructure and stabilising the exchange rate, with an emphasis on implementation, monitoring and evaluation of these economic goals.
Commenting on the successful pricing, the Minister of Finance Mrs Kemi Adeosun said: “The proceeds from this additional note issuance will go towards funding capital projects in the 2016 budget. Infrastructure spending is at the heart of our National Economic Recovery and Growth Plan, which was released earlier this month and guides how we will deliver the urgent reform our economy needs between now and 2020. Resetting the Nigerian economy is essential in order for us to deliver sustainable long term growth.”
Director General, Debt Management Office Dr Abraham Nwankwo said, “Nigeria is delighted to have increased our 2017 Eurobond programme to US$1.5 billion and to have secured the additional US$500 million. Nigeria was keen to take advantage of favorable market conditions and investor appetite for Nigerian debt to complete our foreign borrowing programme for the 2016 budget and deliver further funds for vital capital projects.”
Citi, and Standard Chartered acted as Joint Lead Managers and Stanbic IBTC, as Financial Advisers on the issuance of the bond.

Edit title. Nigeria loading up on debt in foreign currency if I'm understanding it's eurobond.

Gradually but steadily. We will get dia one day

Ok but money well spent should create positive impact,,,, ( ͡° ͜ʖ ͡°)

who say this lady nor de try make he go hug transformer jor, people wen nor fit pass business studies in JSS go de call am names.
That guy wen say na poly graduate wetin he studi sef.?

Good to know

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Nice one. There is still room for more improvement

interesting

Qmerit:
who say this lady nor de try make he go hug transformer jor, people wen nor fit pass business studies in JSS go de call am names.
That guy wen say na poly graduate wetin he studi sef.

You dey mind third class yeye people on Nairaland. Who their degrees help?

Nice one though..

http://talkgeria.com/topic/why-passports-come-in-only-four-colours/

This is march 2017 getting to April and Adeosun is still talking 2016 budget, Her incompetence stinks to the halls of Valhalla.

What is delaying the quick passing of 2017 budget so that implementation can start. The most important part of governance which is government spending and Macro economics is overlooked, what APC govt is facing is customs uniforms, Dino's certificate and saraki's jeep

i wonder why Nigerians get easily distracted, we should focus on the ball and stop chasing shadows

MODs will just be removing my Comment anyhow, nawaoooooo, while I see ones worst that that here, I swear MODS are tribalistic quote me anywhere,

The last euro bond we issued yield more debt

Hope this time we would borrow to pay debt.

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Qmerit:
who say this lady nor de try make he go hug transformer jor, people wen nor fit pass business studies in JSS go de call am names.
That guy wen say na poly graduate wetin he studi sef.?

Borrowing money in foreign currency at high rates is your definition of "trying". Please how did her borrowing spree work out for Ogun state government?

This is the same people who told us they recovered billions of dollars in loot and have "recovered" N3.2 trillion into the TSA.

If this is a bond with 15 year maturity, like the previous one, it will cost $562.5m ($37.5m x 15 years) to service plus the principal of $500m. So the total cost of the loan will be at least $1bn. God forbid the Naira falls again as this will make the cost even more prohibitive.

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4Play:


[s]Borrowing money in foreign currency at high rates is your definition of "trying". Please how did her borrowing spree work out for Ogun state government?

This is the same people who told us they recovered billions of dollars in loot and have "recovered" N3.2 trillion into the TSA.

If this is a bond with 15 year maturity, like the previous one, it will cost $562.5m ($37.5m x 15 years) to service plus the principal of $500m. So the total cost of the loan will be at least $1bn. God forbid the Naira falls again as this will make the cost even more prohibitive.

[/s]

What's dis one saying na..sharrappp there

She dey try? She's a genius? Because she went borrowing to fund capital expendictures? borrowing money to invest in things that don't produce money. Nigerians can't stop to amaze me. Out of all the resources in the country, they govt is still borrowing from the overseas at high interest to be paid back by the future generation in 2032 and you are hailing such actions? Where will the govt that will be in charge in 2032 get the money to pay back this loan? considering the fact that it will be spent on things that don't generate money.
Countries like China and Japan with little or no natural resources are lending out money while Nigeria with all her resources is borrowing and tribalism won't allow the common man to see the truth.
Do you know why the govt is still borrowing money? It is because the govt is being run by incompetent group of people with no nationalistic spirit. They don't believe in Nigeria and don't care what happens to the country in 2032. They don't care what happens to the economy in 2032 because because come what may, they are rest assured that their loot will sustain their lineage then!
Keep on sleeping!

Qmerit:
who say this lady nor de try make he go hug transformer jor, people wen nor fit pass business studies in JSS go de call am names.
That guy wen say na poly graduate wetin he studi sef.?

FakoMaybach1:
This is march 2017 getting to April and Adeosun is still talking 2016 budget, Her incompetence stinks to the halls of Valhalla.

What is delaying the quick passing of 2017 budget so that implementation can start. The most important part of governance which is government spending and Macro economics is overlooked, what APC govt is facing is customs uniforms, Dino's certificate and saraki's jeep

i wonder why Nigerians get easily distracted, we should focus on the ball and stop chasing shadows

So because we are in March 2017, she should just abandon 2016 budget that is expected to run till May, 2017 abi? She should start implementing 2017 budget yet to be appropriated/passed by the National Assembly? Oh sorry my dear, I almost forgot that she is also a magician that doubles as a minister of finance & an Honourable member of the National Assembly whose duty it is to appropriate accordingly. It's well.

Zhirinovsky:
She dey try? She's a genius? Because she went borrowing to fund capital expendictures? borrowing money to invest in things that don't produce money. Nigerians can't stop to amaze me. Out of all the resources in the country, they govt is still borrowing from the overseas at high interest to be paid back by the future generation in 2032 and you are hailing such actions? Where will the govt that will be in charge in 2032 get the money to pay back this loan? considering the fact that it will be spent on things that don't generate money.
Countries like China and Japan with little or no natural resources are lending out money while Nigeria with all her resources is borrowing and tribalism won't allow the common man to see the truth.
Do you know why the govt is still borrowing money? It is because the govt is being run by incompetent group of people with no nationalistic spirit. They don't believe in Nigeria and don't care what happens to the country in 2032. They don't care what happens to the economy in 2032 because because come what may, they are rest assured that their loot will sustain their lineage then!
Keep on sleeping!

I beg to differ from your analysis. Though few are true! Come here those whom are claim to be competent were they not borrowing at the tail end of their turn even to pay civil servants what would you call that..?

4Play:


Borrowing money in foreign currency at high rates is your definition of "trying". Please how did her borrowing spree work out for Ogun state government?

This is the same people who told us they recovered billions of dollars in loot and have "recovered" N3.2 trillion into the TSA.

If this is a bond with 15 year maturity, like the previous one, it will cost $562.5m ($37.5m x 15 years) to service plus the principal of $500m. So the total cost of the loan will be at least $1bn. God forbid the Naira falls again as this will make the cost even more prohibitive.

Paying 7% interest on bonds when they have negative rates in Switzerland! People like hyping nonsense.