Nigeria opens order book for $3bln Eurobond, investor notice says

West African country is aiming to issue the debt in tranches of three tenors

  
Euro currency bills are pictured at the Croatian National Bank in Zagreb, Croatia, May 21, 2019. Picture taken May 21, 2019.

Euro currency bills are pictured at the Croatian National Bank in Zagreb, Croatia, May 21, 2019. Picture taken May 21, 2019.

REUTERS/Antonio Bronic

ABUJA- Nigeria opened the order book for a $3 billion Eurobond offering on Tuesday, aiming to issue the bond next week, according to a notice to investors seen by Reuters.

The West African country is aiming to issue the debt in tranches of three tenors - a seven-year at a yield of 6.5%, a 12-year bond at 7.75% and a 30-year at up to 8.625%.

The government arranged calls last week and on Monday with global and local investors ahead of the planned issue. The debt office has said the meetings will precede pricing for the bond to raise up to $3 billion but not more than $6.2 billion.

The notice set Sept. 28 for the bond settlement, which will be listed on the London and Nigerian Stock Exchanges.

The Eurobonds are part of a government plan to raise 2.343 trillion naira ($5.71 billion) in external financing to help fund spending in 2021 and to part finance the 5.6 trillion naira deficit.

Nigeria picked JPMorgan, Citigroup, Standard Chartered and Goldman Sachs GS.N as international bookrunners and local firm Chapel Hill Denham on the forthcoming Eurobond issue. 

($1 = 410.5000 naira)

(Reporting by Chijioke Ohuocha; Editing by Catherine Evans and Edmund Blair) ((chijioke.ohuocha@thomsonreuters.com; +234 703 4180 621; Reuters Messaging: chijioke.ohuocha.thomsonreuters@reuters.net))


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