By Chinwendu Obienyi
Following the issuances of the FGN’s Eurobonds in 2011, 2013, 2017 and 2019, the FMDQ Exchange has again announced the listing of the FGN’s 6.125 per cent $1.25 billion SEP 2028, 7.375 per cent $1.50 billion SEP 2033 and 8.250 per cent $1.25billion SEP 2051 Eurobonds under its Global Medium-Term Note Programme on its platform.
This, according to the Exchange, represents the FGN’s 7th Eurobond issuances and yet another commendable feat for the government through the Debt Management Office (DMO), and demonstrates the government’s unrelenting commitment to supporting the development of the nation’s debt capital markets (DCM) towards sustainable economic development.
The Exchange in a statement said, the admission of these Eurobonds, co-sponsored by Chapel Hill Denham Advisory Limited and FSDH Merchant Bank Limited, both Registration Members (Listings) of the Exchange, is reflective of the potential of the Nigerian DCM and the commendable level of confidence demonstrated by both issuer and investors and validates the efficient processes and integrated systems through which FMDQ Group Plc via its wholly owned subsidiaries – FMDQ Exchange, FMDQ Clear Limited, FMDQ Depository Limited – has sustained its service delivery to the market and its diverse stakeholders.
Speaking on the successful issuance of the Eurobonds, the Director General, Debt Management Office(DMO), Ms. Patience Oniha, said the issuance was one of the largest financial trades in Africa in 2021 and also aligned with the objectives of the Nigeria’s Debt Management Strategy (2020-2023).
She noted that investors’ keen interest in the issuance as shown by the Order Book of over $12 billion 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 inflow of foreign exchange and increased our External Reserves. DMO achieved this successful outing through the team of International Arrangers, 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 FMDQ Exchange”, Oniha said.
Also commenting on the successful issuance, the co-sponsor of the Eurobonds and a Registration Member (Listings) of the Exchange, Chapel Hill Denham Advisory Limited, through its Chief Executive Officer, Bolaji Balogun, stated that Chapel Hill Denham is honoured to have acted as Nigerian Bookrunner and Joint Lead Manager on the FGN’s $4.00 billion Triple-Tranche Issuance.