The Federal Government over the weekend 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.
Director-General, Debt Management Office (DMO), Dr Abraham Nwankwo, said Eurobond listing was a landmark as it was the first foreign-currency bond to be listed on domestic Exchanges.
According to him, the Eurobond was listed on the domestic Exchanges to enable Nigerians, individuals and corporate bodies, access the Eurobond at their doorsteps.
“With the listing, it means that we are not only creating value, but also creating financial inclusion,” Nwankwo said.
The oversubscription, he said, has shown the level of confidence of the international communities in the Nigerian economy in spite of the current challenges.
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.
He assured that Nigerians would soon feel the positive impact of the many initiatives of the government through improved living standards.
Securities and Exchange Commission (SEC) Director General, Mr. Mounir Gwarzo, reassured that the Commission would continue to provide the needed environment for the capital market to grow.
Gwarzo, who was represented by Mr Adam Sambo, noted that the over subscription of the Eurobond was due to huge confidence shown by the international market.
He said the Commission would always be ready to provide the rules and enabling atmosphere for diversification and the growth of the capital market through innovative products and initiatives by all stakeholders.