New Telegraph

February 24, 2024

$1.25bn Eurobond listing’ll boost domestic capital market’

The Debt Management Office’s (DMO) listing of the 8.375 percent $1.25billion Eurobond issued in March 2022, on the Nigerian Exchange Limited and the FMDQ Securities Exchange Limited, last Thursday, “will boost domestic capital market activities, analysts at Proshare have said.

 

The analysts who stated this in the “Proshare Newsletter” released at the weekend, also noted that the proceed of the Eurobond was used for financing capital projects and boosted the country’s external reserves.

 

Further commenting on activities in the market last week, the analysts stated: “Contrary to the market outcome from the beginning of the week, the bond market took a bearish twist as selling interest dominated short-tenor instruments. The average benchmark yield extended by 25bps to 11.58. Analysts expect the average yield curve to further expand as liquidity stays depressed.”

 

New Telegraph reports that in the statement it issued on the listing of the Eurobond last Thursday, the DMO had stated that: “The DMO will list the 8.375 per cent $1.25bn notes due March 2029 Federal Government of Nigeria Eurobond on the Nigerian Exchange Limited and the FMDQ Securities Exchange Limited today.

 

“The Eurobond was issued in March 2022 based on approvals in the Appropriation Act and subsequent approvals received from the Federal Executive Council and the National Assembly. “The proceeds of the Eurobond were used for financing capital projects in the Appropriation Act.

 

In addition, the proceeds contributed to an increase in Nigeria’s external reserves.”

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