NOVEMBER 15, 2017 – Nigeria is set to meet global debt investors this week as it looks to sell its longest-maturity Eurobond yet.
The government mandated Citigroup Inc. and Standard Chartered Plc to arrange a 10- and 30-year transaction, according to a person familiar with the matter, who isn’t authorized to speak publicly. Nigerian officials will hold conference calls today, before meeting investors in London on Thursday and in New York on Friday, the person said, adding that any issuance will be subject to market conditions.
Nigeria has tapped the market twice this year, raising $1.8 billion of notes due in 2022 and 2032. While it’s still reeling from its worst economic slump in around 30 years, the new offering will probably see a lot of interest from investors given strong demand for emerging-market assets and the rally in oil prices, according to M&G Investments.
“There should be decent appetite,” Claudia Calich, a money manager in London at M&G, which owns Nigerian Eurobonds and naira securities, said Tuesday. “The recent increase in oil prices can’t hurt Nigeria, so it’s a good opportunity. If they are prudent, they’d split it into two transactions instead of doing it in one go.”
Nigeria’s longest dollar bonds mature in 2032. The yield rose three basis points to 6.86 percent as of 8:50 a.m. in London. It has dropped more than 100 basis points since the notes were issued in February.