Plans for Nigeria’s $500 mn Eurobond

Citigroup (www.citigroup.com) expects to see strong demand for Nigeria’s $500 million debut Eurobond despite volatility in global capital markets, Chief Executive Vikram Pandit told reporters in Lagos on 8 December, according to a report on Reuters: “We believe that there will be significant demand for a bond offering from Nigeria and it is evidenced by demand from not only from investors … in developed markets but also emerging markets”.
Citi is the lead book-runner for the 10-year bond, which aims to establish a benchmark for Nigeria in the global market and allow local companies to follow suit, enabling them to raise long-term funding more cheaply than at home.
Pandit declined to comment on the timing of the issue.
Reuters says “banking sources” have said Nigeria plans a roadshow to the U.S. this week (the week starting 13 Dec) and may talk to some European investors directly in a bid to complete the deal before the end of the year, though the timing will depend on market conditions.
Pandit said “It will be a question of how you price the bond so that it is not only priced to create the right benchmark at the tightest price but also trades well in the after-market.”

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