NGX Admits $4bn Eurobond for Trading at Secondary Market
By Aduragbemi Omiyale
The $4 billion Eurobond issued to offshore investors last year by Nigeria has been taken to the Nigerian Exchange (NGX) Limited for trading at the secondary market.
The bond was issued in 2021 by the Debt Management Office (DMO) to raise funds to support the fiscal year’s budget deficit.
Last week, the debt office took the debt instrument to the FMDQ Securities Exchange for listing, giving investors, especially those in the domestic end, who missed the opportunity to buy the paper, to buy through the secondary market.
Business Post reports that the Dollar-denominated bond was listed on the NGX trading platform on Monday, January 31, 2022.
The nation’s main exchange has continued to thrive as a multi-asset securities platform providing access to a diversified range of assets, including equities, fixed income, Exchange Traded Products (ETPs).
In 2021, NGX facilitated capital raising of over N7.13 trillion across asset classes for both public and private corporations.
Furthermore, through its vast network of trading license holder firms and an integrated trading platform, NGX provides institutional and retail investors access to one of the most liquid markets in Sub-Saharan Africa.
Recall that the DMO in 2021 sold the $4 billion FGN Eurobond in three tranches of 6.125% FGN SEP 2028 worth $1.250 billion, 7.375% FGN SEP 2033 worth $1.500 billion and 8.25% FGN SEP 2051 worth $1.250 billion.
The bonds were issued via the Debt Management Office with Chapel Hill Denham Advisory Limited acting as Domestic Book runner and FSDH Merchant Bank Limited as Financial Adviser.