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In continuous demonstration of excellent service delivery by FMDQ Securities Exchange Limited (“FMDQ Exchange” or “the Exchange”), FMDQ Exchange is pleased to announce the listing of the Federal Government of Nigeria 6.125% $1.25bn SEP 2028, 7.375% $1.50bn SEP 2033 and 8.250% $1.25bn SEP 2051 Eurobonds under its Global Medium-Term Note Programme on its platform.
The listing of these foreign currency-denominated debt securities is yet another commendable feat for the Federal Government of Nigeria (FGN) through the Debt Management Office (DMO), Nigeria, and demonstrates the government’s unrelenting commitment to supporting the development of the nation’s debt capital markets (DCM) towards sustainable economic development.
These issuances represent the FGN’s seventh (7th) Eurobond issuances, following the issuances in 2011, 2013, 2017 and 2019. The admission of these Eurobonds, co-sponsored by Chapel Hill Denham Advisory Limited and FSDH Merchant Bank Limited, both Registration Members (Listings) of the Exchange, is reflective of the potential of the Nigerian DCM and the commendable level of confidence demonstrated by both issuer and investors, and validates the efficient processes and integrated systems through which FMDQ Group PLC (“FMDQ Group” or “FMDQ”), via its wholly owned subsidiaries – FMDQ Exchange, FMDQ Clear Limited, FMDQ Depository Limited – has sustained its service delivery to the market and its diverse stakeholders.
Speaking on the successful issuance of the Eurobonds, the Director-General, Debt Management Office, Nigeria, Ms. Patience Oniha, commented that “this issuance was one of the largest financial trades in Africa in 2021 and also aligns the objectives of the Nigeria’s Debt Management Strategy (2020-2023). Investors’ keen interest in the issuance as shown by the Order Book of over $12.00 billion demonstrated confidence in Nigeria’s economy, with bids being received from international investors across Europe, America and Asia as well as robust participation from domestic investors.
The Eurobonds enabled access to International Capital Markets inflow of foreign exchange and increased our External Reserves. DMO achieved this successful outing through the team of International Arrangers, Nigerian Bookrunner, the Financial Adviser and the Legal Advisers. The proceeds of the Eurobonds were applied to part-finance the deficit in the 2021 Appropriation Act. The Eurobonds have been listed on the London Stock Exchange and FMDQ Exchange”.
Also commenting on the successful issuance, the co-sponsor of the Eurobonds and a Registration Member (Listings) of the Exchange, Chapel Hill Denham Advisory Limited, through its Chief Executive Officer, Mr. Bolaji Balogun, stated that “Chapel Hill Denham is honoured to have acted as Nigerian Bookrunner and Joint Lead Manager on the FGN’s $4.00 billion Triple-Tranche Issuance.
The FGN and DMO appointed a Nigerian Bookrunner for the first time on a Sovereign Issuance and the firm delivered the largest ever domestic demand on a Eurobond Issuance, enabling the FGN price tightly, notwithstanding tricky market conditions”.
Also, the co-sponsor of the Eurobonds and a Registration Member (Listings) of the Exchange, FSDH Merchant Bank Limited, through its Managing Director, Mrs Bukola Smith, said “FSDH Merchant Bank Limited is pleased to have acted as Financial Adviser to the FGN on the issuance of the $4.00 billion Triple-Tranche Eurobonds.
The Eurobonds were oversubscribed by 300% and saw significant demand from a diverse cohort of large ticket investors and was indicative of confidence in Nigeria and our economy; despite the challenges caused by the COVID-19 pandemic. The listing of the Eurobonds on FMDQ Exchange will provide visibility and enhance the liquidity of the Eurobonds. We would like to thank the FGN, the DMO and the investor community for their support in ensuring the successful capital raise.”
In delivering on its mandate as a market organiser, FMDQ Exchange remains committed to articulating and pioneering, with the support of its key stakeholders, innovative ways to improve and make the Nigerian financial markets globally competitive, operationally excellent, liquid, and diverse.
As is the corporate tradition for FMDQ Exchange, these Eurobonds shall be availed all the benefits of FMDQ Exchange’s prestigious listing and quotation service, including global visibility through the FMDQ Exchange website and systems, governance, credible price formation and continuous information disclosure to protect investor interest, amongst others.
FMDQ Group is Africa’s first vertically integrated financial market infrastructure group, strategically positioned to provide registration, listing, quotation and noting services; integrated trading, clearing & central counterparty, settlement, and risk management for financial market transactions; depository of securities, as well as data and information services, across the debt capital, foreign exchange, derivatives and equity markets, through its wholly owned subsidiaries – FMDQ Exchange, FMDQ Clear Limited, FMDQ Depository Limited and FMDQ Private Markets Limited. As a sustainability-focused FMI group, FMDQ Group, through FMDQ Exchange, operates Africa’s premier Green Exchange – FMDQ Green Exchange – positioned to lead the transition towards a sustainable future.
