Eurobonds roadshow closes with higher rates   

15 November 2018 : Following a three-day Eurobond roadshow that closed yesterday, the Federal Government has been able to raise $2.87 billion of external borrowing from the international market. Specifically, the FG offered and sold the 7-($1.12 bn), 12-($1.00 bn) and 30-year ($0.75 bn) bonds at stop rates of 7.63%, 8.75% and 9.25% respectively. With this, Nigeria’s total Eurobond liabilities come to $10.87 billion. More noteworthy is the increase in the cost of foreign borrowing since the previous issue in February, where a 12-yr bond sold at 7.14% - 161bps below current issue. On the other hand, the DMO is set to maintain the pace of domestic borrowing with the recently released November bond circular showing N115 billion on offer at this month’s PMA (the same amount offered in October). Analysts note that the government has continued to play by its strategy of rebalancing its debt profile towards longer term and arguably cheaper foreign debt. 

Reporting for EasyKobo on Thursday , 15 November 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited

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