Published: July 21, 2014
Development bank issues debut local currency bond on Nigerian market.
The African Development Bank (AfDB) has carried out its first local currency bond issuance on the Nigerian capital market – a seven-year bond worth NGN12.9bn (US$79.5mn). The paper priced at a 75 basis-point discount compared to the comparable reference point on the Nigerian sovereign yield curve, with a coupon of 11.25%.
The issuance is part of the AfDB’s NGN160bn medium term note programme, which received approval from the Nigerian Securities and Exchange Commission in June. The programme is the first to be established by a supranational issuer in the Nigerian capital market. This recent issuance is the largest ever by value to be placed on the Nigerian market and represents the longest maturity in its asset class.
This is the AfDB’s third domestic issuance outside of South Africa – the bank issued Ugandan domestic bonds in August 2012 and May 2013. It was advised on this latest issuance by the Nigerian arm of Standard Bank Stanbic IBTC Capital and Rand Merchant Bank Nigeria.