The Federal Ministry of Finance has said that its 2018 Euro bond, which is the sixth since 2011, was three times oversubscribed.

A road show facilitated by City and Standard Chartered bank, had kicked off on Monday in London, to promote the bond offering.

The three-tranche bond was sought after to the tune of $9.5 billion, according to the statement from the ministry on Wednesday.

In October 2018, the National Assembly had approved the issuance of $2.786 billion from the International Capital Market to partly finance the 2018 budget.

 

The statement read: "In a demonstration of confidence in Nigeria’s economy, the $2.86 billion Eurobond road show in London was oversubscribed three times from leading global institutional investors with a peak combined order book of over $9.5 billion.

"The Eurobond oversubscription is owed largely to Nigeria’s successful engagement with the Fitch Rating Agency. The agency had changed the outlook on Nigeria’s sovereign rating from B+ (negative) to B+ (stable), based on improving macro-economic fundamentals.

"The notes comprise a $1.18b 7-year series, $1b 12-year series & a $750 million 30-year series. The 7-year series will bear interest at a rate of 7.625%, while the 12-year series will bear interest at a rate of 8.75% and the 30-year series will bear interest at a rate of 9.25%.

"At a cost considerably lower than many other countries across Sub-Sahara Africa, this oversubscribed Eurobond further demonstrates the confidence of international capital market investors to invest in Nigeria."

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