FEDERAL MINISTRY OF FINANCE
HEADQUARTERS, CENTRAL BUSINESS DISTRICT, ABUJA
PRESS UNIT, 4TH FLOOR
News Release March 28, 2017
NIGERIA PRICED ITS US500 MILLION
NOTES AT A YIELD OF 7.5 PER CENT
Announcement of pricing of US$500 million notes by the Federal
Republic of Nigeria under its US$1.5 billion Global Medium Term Note
programme to be consolidated and form a single series with the Federal
Republic of Nigeria’s existing US$1,000,000,000 Notes due 2032
Abuja: 29th March 2017: The Federal Republic of Nigeria (the
“Republic”) today announces that it has priced its offering of US$500
million aggregate principal amount of notes (the “Notes”) at a yield
of 7.5% under its US$1.5 billion (increased from US$1 billion) Global
Medium Term Note Programme, which will be consolidated and form a
single series with the Republic’s existing US$1,000,000,000 7.875 per
cent. Notes due 2032 issued on 16 February 2017 (the “Original
Notes”). The terms and conditions of the Notes will be identical to
those of the Original Notes, paying a coupon of 7.875% per annum,
maturing on 16 February 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.
The successful pricing, which is priced 37.5bps inside the original
coupon rate, demonstrates continued strong market appetite for
Nigerian securities. This, despite continued volatility in emerging
and frontier markets and shows confidence by the international
investment community in Nigeria’s economic reform agenda.
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, the Honorable 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.”
Commenting on the Notes’ pricing, the DMO Director General, Dr Abraham
Nwankwo said:
“Following the success of our US$1 billion note issuance in February,
Nigeria is delighted to have increased our 2017 Eurobond programme to
US$1.5 billion and to have secured the additional US$500 million.
Nigeria was keen to take advantage of favorable market conditions and
investor appetite for Nigerian debt to complete our foreign borrowing
programme for the 2016 budget and deliver further funds for vital
capital projects.”
Citi, and Standard Chartered acted as Joint Lead Managers and Stanbic
IBTC, as Financial Advisers on this Issue.
The information contained in this communication shall not constitute
an offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of the securities referred to herein in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration, exemption from registration or
qualification under the securities laws of any such jurisdiction. The
Republic has not registered, and does not intend to register, any
portion of the securities in any of these jurisdictions.
This communication is not an offer of securities for sale in the
United States. The securities referred to herein have not been
registered under the U.S. Securities Act of 1933, as amended (the
“Securities Act”) and may not be offered or sold in the United States
absent registration or an exemption from registration under the
Securities Act, and the rules and regulations thereunder. The
Republic does not intend to register any of the securities in the
United States or to conduct a public offering of the securities in the
United States or elsewhere.
This communication does not constitute an offer of the Securities to
the public in the United Kingdom. This communication is being
distributed to and is directed only at (i) persons who are outside the
United Kingdom or (ii) persons who are investment professionals within
the meaning of Article 19(5) of the Financial Services and Markets Act
2000 (Financial Promotion) Order 2005 (the “Order”), and (iii) high
net worth entities, and other persons to whom it may lawfully be
communicated, falling within Article 49(2)(a) to (d) of the Order, and
(iv) any other persons to whom it may otherwise lawfully be
communicated or caused to be communicated (all such persons in (i) to
(iv) together being referred to as “Relevant Persons”). Any
investment activity to which this communication relates will only be
available to and will only be engaged with, Relevant Persons. Any
person who is not a Relevant Person should not act or rely on this
document or any of its contents.
The approval of the Nigerian Securities and Exchange Commission is not
required for primary offerings of securities issued by the Republic.
Any securities referred to herein have not been registered with the
Nigerian Securities and Exchange Commission. Where securities issued
by the Republic are listed on any securities exchange in Nigeria, the
securities shall be subject to the relevant regulatory requirements
relating to secondary market transactions of securities issued by the
Republic. In such circumstances, offering participants will be
required to comply with applicable rules and regulations in Nigeria in
order to offer the relevant securities to the public in Nigeria.
Signed
SALISU NA’INNA DAMBATTA
Director (Information)