(Ecofin Agency) - The Debt Management Office (DMO) has listed the Federal Government’s $1 billion Eurobond on the Nigerian Stock Exchange (NSE). This was disclosed by Abraham Nwankwo, the Director-General of DMO, during the bond listing at the NSE on Thursday in Lagos.

According to him, the Eurobond was the first ever of the kind to be listed on NSE. It was raised under realistic terms to fund capital expenditures stated in the budget. He explained that the listing of domestic Sovereign Eurobond strengthens the Federal Government’s commitment to growing the country’s capital market as it would cover the infrastructure deficit hindering economic growth.

Nwankwo noted that the Eurobond which was over-subscribed by 780% was part of the government‘s funding strategy for its 2016 capital expenditure and it would be used to finance major infrastructure projects in line with its economic plan.

Speaking in the same vein, Monday Usiade, the Head of the Market Development Department of DMO, revealed that the coupon rate for the bond was 7.875% per annum and it can be paid on a semi-annual basis. Usiade added that the principal listing was on the London Stock Exchange (LSE), while the NSE and FMDQ OTC Securities Exchange were secondary.

Commenting on the development, Ade Bajomo, Executive Director, Market Operations and Technology at the NSE, said: “the listing of the dollar-denominated bond on the Exchange will boost price discovery and liquidity in the local market as well as, help attract reliable long-term foreign currency-denominated funds into the financial market.”

Anita Fatunji