The federal government through the Debt Management Office (DMO) has floated a $2.5 billion Eurobond, making the fifth issuance in the country’s history.
In a statement by Salisu Na’inna Dambatta, director of information at the ministry of finance, said it will be divided into two notes with different maturity periods.
“The notes comprise a $1.25 billion 12-year series and a $1.25 billion 20-year series. The 12-year series will bear interest at a rate of 7.143%, while the 20-year series will bear interest at a rate of 7.696%, and, in each case, will be repayable with a bullet repayment of the principal on maturity,” the statement read.
“The offering is expected to close on or about February 23, 2018, subject to the satisfaction of various customary closing conditions. The Republic intends to use the proceeds of the notes for the refinancing of domestic debt.
“The notes represent the Republic’s fifth Eurobond issuance, following issuances in 2011, 2013 and two in 2017.”
The statement further revealed that, the notes will be admitted to the official list of the UK Listing Authority and available to trade on the London Stock Exchange.
Commenting on the issuance, Patience Oniha, DMO director general, said: “I am particularly pleased that the issuance will enable us to refinance a portion of our existing domestic debt portfolio, with external debt at considerably lower cost, but also that the impact of the process has already led to a reduction in the cost of domestic borrowing, and so a double benefit for the cost of our broader debt portfolio. Lower domestic rates will also benefit corporate borrowers.”