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

Obinna Chima
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.”

The Economic Secretary to the British Treasury, Simon Kirby MP, added: “I am delighted that the Nigerian government has chosen London as the location to list its $1bn 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.”
The statement recalled that the LSEG has a long history of supporting the development of African capital markets and investment in African companies.

It listed them as follows:
• There are currently nine African sovereign bonds listed in London, from Gabon, Ghana, Namibia, Nigeria and Zambia.
• There are 111 African companies listed or trading on London Stock Exchange – more than on any other international stock exchange.
• These companies have a total market capitalisation of over US$200 billion, and in the last 10 years, have raised more than $26 billion on our markets.

• Seplat was the first Nigerian company to simultaneously dual list equity shares in London and Nigeria in April 2014.
• In November 2014, London Stock Exchange Group 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.

• 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 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.