DMO’s first Eurobonds listed in tranches on FMDQ and NSE

The Debt Management Office of Nigeria on Friday, June 14, 2019 listed $2.5bn Dual Tranche and $2.8bn Triple Eurobonds at the FMDQ OTC Securities Exchange. 

At the listing ceremony Ms. Patience Oniha, Director –General,  Debt Management Office, Nigeria informed bond traders that the Eurobond listings, tied into the strategy of achieving a 60% domestic  and 40% foreign debt ratio for Nigeria. 

It was also designed to reduce the debt servicing costs for Nigeria, which was important to the debt management objective of the nation. 

According to her, it was an opportunity to reduce the interest cost to borrowing for the country, even as proceeds have been used since issuance to finance capital projects in the 2017 and 2018 budgets. 

“We are extremely happy that interest rate came down simply for the fact that we redeemed  treasury bills to the amount of N976 billion which is the first time this has happened and it reflects the objective of having a new term structure for treasury bills” Oniha said. 

The DG DMO stated that the focus remains  on utilizing  debt to support the growth of the Nigerian capital market and economy. 

Oniha speaking further asserted that since 2011, activities in the Eurobond market have yielded sundry benefits to the economy, which include; 

• Visibility in the International Capital Market
• Providing an avenue for States to access new funding
• Create alternative borrowing window for government

She however assured the market that in carrying out the listings, the Federal Government had no intention to crowd out the private sector. 

Kobby Bentsi-Enchill, ED & Head, Debt Capital Markets Stanbic IBTC Capital Limited in his remarks was pleased that the DMO was leading the way. 

“We thank you collectively, we thank you also for your support in terms of regulation. We are hopeful that the DMO will continue to contribute to the  growth of the domestic market” Bentsi-Enchill said. 

Mrs. Hamda Ambah Managing Director of  FSDH Merchant Bank Limited, in her address said that the listings gained significant interest from leading global investors. She said that the successful bond issuance was a remarkable achievement. 

She stated that the listing gained significant interest from leading global investors. She said the successful issuance was remarkable for the market. 

Associate Executive Director, Capital Markets, FMDQ OTC Exchange Ms Tunmi Sekoni in an interview said “The thing about this listing is that it is a foreign currency bond listed locally. It provides an opportunity for local investors to participate in the market.” 

Sekoni also stressed that the listing showcased Nigeria to the global investment community, bringing more transparency to the debt capital market.