FG Completes $4 Billion Eurobonds Listing On FMDQ

The FMDQ Securities Exchange Ltd. has made public its listing of the Federal Government of Nigeria's $4 billion dollars in Eurobonds under its global medium-term note.

The securities and exchange company made this information available to the press during the week.

According to NAN, the global medium-term note of the Eurobond will be broken down into a 6.12 percent $1.25 billion dollar note with a maturity date of Sep. 2028, a 7.37 percent $1.50 billion dollar note with a maturity date of Sep. 2033, and lastly, an 8.25 percent $1.25 billion dollar note with a targeted maturity due date of Sep. 2051.

The company commended the FG for the listing of the foreign currency-denominated debt securities through the Debt Management Office (DMO).

The statement said the transaction demonstrated the government’s unrelenting belief and dedication to supporting the development of the nation’s debt capital markets (DCM) toward sustainable economic development.

"These issuances represent the FGN’s seventh Eurobond issuance, following the issuances in 2011, 2013, 2017, and 2019.

"The admission of these Eurobonds, co-sponsored by Chapel Hill Denham Advisory Ltd. and FSDH Merchant Bank Ltd., is reflective of the potential of the Nigerian DCM and the commendable level of confidence demonstrated by both issuer and investors," it said.

Patience Oniha, Director-General of the DMO, not only commended this achievement as one of the biggest in the continent’s financial market but also said it aligns with the objectives of Nigeria’s Debt Management Strategy (2020–2023).

According to her, "Investors’ keen interest in the issuance, as shown by the Order Book of over 12 billion dollars, demonstrated confidence in Nigeria’s economy, with bids being received from international investors across Europe, America, and Asia as well as robust participation from domestic investors."

"The Eurobonds enabled access to international capital markets, resulting in an inflow of foreign exchange that increased our external reserves.

" DMO achieved this successful outing through the team of international arrangers, the Nigerian bookrunner, the financial adviser, and the legal advisers.

"The proceeds of the Eurobonds were applied to part-finance the deficit in the 2021 Appropriation Act. The Eurobonds have been listed on the London Stock Exchange and the FMDQ Exchange, "Oniha concluded.

Bolaji Balogun, CEO of Chapel Hill Denham Advisory Ltd, who co-sponsored the Eurobonds, was completely delighted to be a part of this history-making event.

According to him, "Chapel Hill Denham is honoured to have acted as Nigerian bookrunner and Joint Lead Manager on the FGN’s four billion dollar Triple-Tranche Issuance."

"The FGN and DMO appointed a Nigerian Bookrunner for the first time on a Sovereign Issuance and the firm delivered the largest ever domestic demand on a Eurobond Issuance, enabling the FGN price tightly, notwithstanding tricky market conditions."