NSE lists Nigeria’s first FX denominated bonds

Abraham Nwankwo

…partners DMO to list $1bn FGN Eurobonds


The Nigerian Stock Exchange (NSE) has announced the listing of $1 billion Federal Government (FGN) Eurobond issued under Nigeria’s newly established Global Medium Term Note programme on the floor of the Exchange on Thursday, March 2, 2017. This 15-year domestic Sovereign Eurobond priced at par and at a coupon of 7.875% per annum is the first foreign currency denominated security to be listed and traded in the Nigerian capital market. Commenting on the listing, the Director General, Debt Management Office (DMO), Dr Abraham Nwankwo said that “the listing of domestic Sovereign Eurobond reinforces FGN’s commitment to deepen and grow the Nigerian capital market. Developing the domestic market can help bridge the infrastructure deficit constraining economic growth”.

He noted that the Eurobond which was over-subscribed by 780 per cent, is part of FGN’s funding strategy for its 2016 capital expenditure and will be spent on key infrastructure projects, in line with its economic plan. “This huge oversubscription rate underscores a buoyant investor’s appetite for building exposure to Nigeria and demonstrates international confidence in the economy’s long term prospects,” he said.

Also speaking on the listing, the Executive Director, Market Operations and Technology, Mr Ade Bajomo commended the DMO for listing the Eurobond in the nation’s bourse. He noted that the domestic listing will diversify its investors’ base by giving Nigerian institutional investors access to the bond.

Bajomo further remarked that “the listing of the dollar denominated bond on the Exchange will boost price discovery and liquidity in the local market as well as help attract reliable long term foreign currency denominated funds into the financial market. It will also set the foundation for raising and listing more foreign denominated securities in Nigeria which will open up additional capital raising options for issuers and portfolio diversification opportunities to investors”.

“To ensure seamless trading and settlement of the Eurobond, the Exchange, working with Central Securities Clearing System (CSCS) developed and presented to issuers and transaction parties, a framework depicting onshore and cross border trade and settlement process in line with robust market practices”, added Bajomo.

This listing bring to five the number of listing that has occurred on the Exchange in 2017. The Exchange admitted Forte Oil’s Bond, Exchange Traded Fund (ETF) and Real Estate Investment Trust (REITs) whilst welcoming Medview Airline and Jaiz Bank to its Main Board via Listing by Introduction.




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