Nigeria set to sell longest-dated bonds, to meet with global debt investors in London, New York

Nigeria is set to meet global debt investors this week as it looks to sell its longest-maturity Eurobond ever, according to Reuters report Wednesday.

To this end, the Nigerian government has already mandated Citigroup Inc. and Standard Chartered Plc to arrange a 10- and 30-year transaction, just as officials hold conference calls Wednesday, before meeting investors in London on Thursday and in New York on Friday.

The mandate comes a day after Nigerian lawmakers approved President Muhammadu Buhari’s plan to raise $5.5 billion from international offerings, of which $2.5 billion will fund the 2017 budget, while the remaining $3 billion will be used to refinance maturing local-currency debt.

Businessamlive learnt the bonds don’t have to be issued all at once.

Nigeria has tapped the market twice this year, raising $1.8 billion of notes due in 2022 and 2032. While it is still reeling from its worst economic slump in around 30 years, the new offering will probably see a lot of interest from investors given strong demand for emerging-market assets and the rally in oil prices, according to M&G Investments.

Nigeria is an OPEC member and Africa’s biggest crude producer, exporting about 1.7 million barrels a day.

“There should be decent appetite,” Claudia Calich, a money manager in London at M&G, which owns Nigerian Eurobonds and naira securities, said Tuesday.

“The recent increase in oil prices can’t hurt Nigeria, so it’s a good opportunity. If they are prudent, they’d split it into two transactions instead of doing it in one go.”

Nigeria’s longest dollar bonds mature in 2032. The yield rose three basis points to 6.86 percent as of Wednesday in London. It has dropped more than 100 basis points since the notes were issued in February.

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