Nigeria’s $3bn Eurobond Gets ‘B+’ Rating

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    A taxi cab passes a giant advertising screen showing US dollar, British pound and euro foreign currency exchange rates on a busy city road in Lagos, Nigeria, on Wednesday, July 26, 2017. Nigeria's economy, which in 2016 suffered its first full-year recession since 1987, will probably return to growth in 2017. Photographer: Tom Saater/Bloomberg

    One of the leading rating agencies, Fitch Ratings has assigned Nigeria’s $1.5 billion 6.500% senior unsecured notes due 28 November 2027 and the $1.5 billion 7.625% senior unsecured notes due 28 November 2047 a final rating of ‘B+’.

    According to a statement yesterday, the final rating replaced the expected rating of ‘B+ (EXP)’ that Fitch had assigned to the issue on November 15, 2017.

    It explained that the expected rating was in line with Nigeria’s long-term foreign-currency issuer Default Rating (IDR) of ‘B+’ with a negative Outlook.

    “The rating is sensitive to any changes in Nigeria’s long-term foreign-currency IDR,” it added.

    On 31 August 2017, Fitch affirmed Nigeria’s long-term foreign-currency IDR ‘B+’ with a negative outlook. The country’s long-term local-currency IDR is also ‘B+’ with a negative outlook.

    The federal government recently announced the floating of a $3 billion Eurobond, offering an aggregate principal amount of dual series notes under its US$4.5 billion Global Medium Term Note programme.

    A statement issued by Mr. Oluyinka Akintunde, media aide to the Minister of Finance, Mrs. Kemi Adeosun had revealed that the 10-year series would bear interest at a rate of 6.5 per cent, while the 30-year series will bear interest at a rate of 7.625 per cent, which will be repayable with a bullet repayment of the principal on maturity. The offering attracted significant interests from leading global institutional investors.

    The pricing was determined following a roadshow led by Adeosun and some other senior government officials.

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