Nigeria’s $1bn Eurobond starts trading on London Stock Exchange

by | February 17, 2017 11:34 am

…seen to demonstrate investor confidence in economy

The London Stock Exchange (LSE) on Thursday welcomed trading in Nigeria’s $1 billion Eurobond. The Eurobond trading in the London Stock Exchange demonstrates investors’ confidence in Nigeria’s economy.
The offer was nearly eight times oversubscribed, with the order book closing at approximately $7.7 billion. The listing secured high quality investor support from across the US and Europe and will support Nigeria in financing its long term infrastructure projects.
Ibukun Adebayo, international markets unit – head of Middle East, Africa and South Asia, London Stock Exchange said:  “The success of Nigeria’s bond listing is a strong statement of international investor interest in building exposure to Nigeria’s economy. It reinforces the 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.”
The 15 year government bond, paying a coupon of 7.875 percent, is the longest ever maturity for an international Nigerian bond, the first international issuance for the country since 2013.
The Eurobond listing on LSE builds on the recent pipeline of several high profile sovereign, supranational, municipal and private company bond issuances on the London Stock Exchange.
The London Stock Exchange Group has a long history of supporting the development of African capital markets and investment in African companies. There are currently nine African sovereign bonds listed in London, from Gabon, Ghana, Namibia, Nigeria and Zambia.
Aside Africa, in January 2017, Israel listed its largest ever Eurobond offering of €2.25 billion in London.
“Nigeria’s choice of London Stock Exchange for its first international bond offering since 2013 underlines the 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,” Adebayo said.
Simon Kirby, the Economic Secretary to the Treasury, London said:  “I am delighted that the Nigerian government has chosen London as the location to list its $1billion sovereign bond. This issuance underlines Britain’s position as the world’s leading global financial centre and strengthens our economic and financial relationship with Nigeria.”
There are 111 African companies listed or trading on the London Stock Exchange – more than on any other international stock exchange. These companies have a total market capitalisation of over $200 billion, and in the last 10 years have raised more than $26 billion on our markets.
In November 2014, the London Stock Exchange Group (LSEG) and The Nigerian Stock Exchange signed a capital markets agreement to support African companies seeking dual listings in London and Lagos. The agreement followed the implementation earlier in 2014 of a unique new cross-border settlement process between the UK and Nigeria.
Seplat was the first Nigerian company to simultaneously dual-list equity shares in London and Nigeria in April 2014.
In March 2016, LSEG established an Africa Advisory Group, bringing together 12 distinguished business leaders, policymakers and investors from across Africa, to discuss the challenges and opportunities presented by the development of the continent’s capital markets.
In June 2014, LSEG signed a strategic agreement with the Casablanca Stock Exchange to share its expertise on the full exchange business chain, from listing to trading, and from clearing to settlement and custody, with a commitment to position Casablanca’s capital markets and financial infrastructure as a regional hub.
LSEG market infrastructure technology is deployed in more 12 African markets, including Botswana Stock Exchange, Casablanca Stock Exchange and Johannesburg Stock Exchange.