Published: July 8, 2013
Country raises US$1bn in eurobond sale.
Nigeria has raised US$1bn through an international bond sale, despite the recent reduction in investor appetite for emerging-market debt.
The country issued US$500mn of 5-year bonds and US$500mn of 10-year bonds, with respective coupons of 5.375% and 6.25%. The order book was four-times oversubscribed. Cit and Deutsche ran the deal.
The successful auction defies a recent move away from emerging market debt in the wake of the Federal Reserve’s announcement that it is to phase out quantitative easing. The Fed plans to hold back on US$85bn a month of asset purchases, which had helped push borrowing costs to record lows and drive investors towards more risky assets.
Kenya, Ghana and Senegal are also set to test the markets over the coming months.