Nigerian Government on Monday revealed its $3billion double series security pricing under its $4.5bn Global Medium Term Note programme.
According to the Minister of Finance, Mrs. Kemi Adesina, the notes comprise will last for 10 years and 30 years, which are $1.5billion each.
She further explained that the 10-year series would bear interest at a rate of 6.5 per cent, while the 30-year series would bear interest at a rate of 7.625 per cent, noting that the repayment would be with principal on maturity.The minister added that the issue would represent the country’s fourth Eurobond offering, apart from that 2011, the double series of 2013 and one issue earlier 2017.
The offering is expected to end around November 28, 2017, in line with closing condition, as it has already attracted interest from leading international institutional investors.
Moreover, the offering is expected to be officially listed on the London Stock Exchange’s regulated market in the United Kingdom Listing Authority.
The statement said the Federal Government might apply for the notes to be eligible for trading and listed on the FMDQ OTC Securities Exchange and the Nigerian Stock Exchange.
The statement said the pricing was determined following a roadshow led by Adeosun; Minister of Budget and National Planning, Senator Udo Udoma; Governor of the Central Bank of Nigeria, Godwin Emefiele; Director-General, Debt Management Office, Ms. Patience Oniha; and Director-General, Budget Office of the Federation, Mr. Ben Akabueze.
The minister also stressed that the proceed of the borrowing would be utilised by the Federal Government to finance the approved budgetary spending and servicing of domestic debt as applicable.
“Nigeria is implementing an ambitious economic reform agenda designed to deliver long-term sustainable growth and reduce reliance on oil and gas revenues, while reducing waste and improving the efficiency of government expenditure.
“Our economy is beginning to recover, Gross Domestic Product having returned to growth in 2017, but we must maintain the momentum behind our investments in order to further drive growth. That is why we are, and will continue to focus investment on the enabling infrastructure we need to broaden economic productivity.”
“Successfully extending out debt profile in the international market to 30 years is a key element of that strategy as it establishes a basis for the longer-term financing required for transformational infrastructure investment.
“As we have always stated, we are progressively replacing debt with revenue, which is reflected in the 2018 budget proposal.”
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