NIGERIA on Wednesday announced the pricing of its offering of US$500 million aggregate principal amount of notes at a yield of 7.5 per cent under its US$1.5 billion Global Medium Term Note Programme, which will be consolidated and form a single series with the existing US$1,000,000,000 7.875 per cent.
Spokesperson for the Federal Ministry of Finance, Salisu Na’Inna Dambatta said the offering was increased from the initial US$1 billion.
The original notes, which would be due in 2032, were issued on 16 February 2017. According to a statement from the Federal Ministry of Finance, the terms and conditions of the Notes will be identical to those of the Original Notes, paying a coupon of 7.875 per cent per annum, maturing on February 16, 2032 and repayable by way of bullet repayment of the principal together with the Original Notes.
As with the Original Notes, the Republic intends to use the proceeds of the Notes to fund capital expenditures in the 2016 budget.
“When issued, the Notes will be admitted alongside the Original Notes to the official list of the UK Listing Authority and to trading on the London Stock Exchange’s regulated market.
“The Republic may apply for the Notes to be eligible for trading or listed on the Nigerian Stock Exchange and Financial Markets Dealers Quotations Over-the-Counter Securities Exchange.
Pricing of the Notes comes shortly after Nigeria launched its National Economic Recovery and Growth Plan 2017-2020 on 7 March 2017.
The plan focuses on policy objectives in five core areas; macroeconomic policy, economic diversification and growth drivers, competitiveness, social inclusion and jobs, and governance and other enablers.
Key targets of the NERGP include reaching single-digit inflation, further growth in the agricultural sector, reducing unemployment, increasing operational energy capacity and domestic refining capacity, improving transportation infrastructure and stabilising the exchange rate, with an emphasis on implementation, monitoring and evaluation of these economic goals.
Commenting following the successful pricing, Minister of Finance, Mrs Kemi Adeosun, said: “The proceeds from this additional note issuance will go towards funding capital projects in the 2016 budget.
“Infrastructure spending is at the heart of our National Economic Recovery and Growth Plan, which was released earlier this month and guides how we will deliver the urgent reform our economy needs between now and 2020.
“Resetting the Nigerian economy is essential in order for us to deliver sustainable long term growth.”