Nigeria taps Citibank, JPM, Goldman for first Eurobond in two years
TLDR
- Nigeria prepares to issue first Eurobonds since 2022 with advisory from Citibank NA, Goldman Sachs, and JPMorgan Chase & Co.
- Standard Chartered Bank and Chapel Hill Denham hired for advisory services in upcoming bond issuance.
- Auction size for the bond issuance before June remains undetermined, following Nigeria's successful $1.25 billion Eurobond issuance in March 2022.
Nigeria is gearing up to issue its first Eurobonds since 2022, enlisting the expertise of investment banks such as Citibank NA, Goldman Sachs, and JPMorgan Chase & Co as advisors, according to a Bloomberg report. This comes amid a resurgence of Eurobond activities among emerging economies and a return of yield hunt as the bond spree lures risk takers to Africa.
In addition, Standard Chartered Bank and Lagos-based Chapel Hill Denham have been hired to provide advisory services for the upcoming bond issuance. The size of the auction, scheduled to take place before June, has yet to be determined.
Nigeria's last foray into the international debt market was in March 2022 when it successfully raised $1.25 billion through a seven-year Eurobond issuance and it has a Eurobonds maturity due next year amounting to $1.2 billion, which would add to over $1.0 billion typically used to service external obligations annually.
Key Takeaways
The recent resurgence of Eurobond activities among emerging economies, exemplified by successful issuances from countries like Benin, Ivory Coast, and Kenya, underscores a broader trend of nations tapping into the international debt market to bolster their financial reserves amidst challenges posed by elevated global interest rates. Since taking office in May 2023, President Tinubu has embarked on an aggressive agenda aimed at revitalizing foreign investment inflows into Nigeria. These efforts include implementing currency devaluations to establish a more flexible exchange rate regime, reducing the gap between the Central Bank's policy rate and government securities yields, and controversially eliminating fuel subsidies. These initiatives signal Nigeria's proactive approach to addressing economic challenges and attracting international investors.
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