Nigeria sold $2.5 billion of Eurobonds so as to lower funding costs by using the notes to refinance higher-yielding naira debt.
On Thursday, Nigeria sold $1.25 billion of 12-year securities with a yield of 7.14 percent and a separate 20-year tranche, also $1.25 billion, at 7.7 percent, according to the finance ministry.
Investors placed more than $11.5 billion of orders, according to the ministry. The sales complete the selling more foreign debt to help reduce the burden of double-digit yields on local-currency bonds.
Nigeria sold a record $4.8 billion of Eurobonds last year, most recently in November, when it issued $3 billion of 10- and 30-year debt. Yields on the latter rose six basis points to 7.7 percent by close Thursday, the highest since they were issued. Nigeria’s local bonds have an average yield of 13.7 percent, according to data compiled by Bloomberg.
Citigroup Inc. and Standard Chartered Plc managed the latest deal, while Standard Bank Group Ltd.’s Nigerian unit was a financial adviser. Nigeria is the second after Egypt to tap the market. Angola, Ghana, Ivory Coast and Kenya are all considering to tap the Eurobonds market.
