Nigeria raises $3bn in international bond sale to fund fiscal deficit
Lagos — Nigeria has raised $3bn in a two-part international bond sale as it looks to fund a fiscal deficit and reduce its local-currency debt burden. The West African nation split the offering equally between 10-and 30-year tranches. The yield was 6.5% for the shorter notes and 7.625% for the 30-year portion, down 25 basis points on each tranche from the initial guidance. The offering, its biggest eurobond issuance ever, is the nation’s third sale this year. While Africa’s biggest oil producer is still reeling from its worst economic slump in about 25 years, Nigeria has benefited from strong demand for emerging-market assets and Brent crude’s 30% rise since the end of June to more than $62 a barrel. Most of the new debt will fund Nigeria’s 2017 budget, with the rest used to refinance maturing local-currency bonds, according to the government. The yield on the 30-year bond was 25 basis points lower than its 15-year deal sold in February. The rate on those — the nation’s longest bonds...
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