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Nigeria’s $1bn Eurobond Starts Trading on London Stock Exchange

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One week after its issue, Nigeria’s $1 billion Eurobond started trading yesterday on the London Stock Exchange (LSE). The 15-year government bond, paying a coupon of 7.875 per cent, is the longest ever maturity for an international Nigerian bond, the first international issuance for the country since 2013.

The offer was nearly eight times oversubscribed, with the order book closing at approximately $7.7 billion. The listing secured high quality investors’ support from across the U.S. and Europe and will support Nigeria in financing its long-term infrastructure projects, a statement from the London Stock Exchange Group (LSEG) said.

“Today’s (yesterday) listing builds on the recent pipeline of several high profile sovereign, supranational, municipal and private company bond issuances on London Stock Exchange.

“In January 2017, Israel listed its largest ever Eurobond offering of €2.25 billion in London,” LSEG said.

Also commenting, the Head of Middle East, Africa and South Asia, International Markets Unit of the LSE, Ibukun Adebayo, said: “Nigeria’s choice of London Stock Exchange for its first international bond offering since 2013 underlines London Stock Exchange’s position as a leading global venue for debt fund raising and London’s enduring status as a market open to the world.

“The success of Nigeria’s bond listing is a strong statement of international investors’ interest in building exposure to Nigeria’s economy. It reinforces London Stock Exchange’s status as a strong partner to Nigeria and the City’s ability to provide a deep additional channel of finance for the development of Nigerian infrastructure and the growth of the economy.”

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