By Rebecca Melvin
New York, Feb. 16 – The Federal Republic of Nigeria priced $2.5 billion of 12- and 20-year eurobonds (expected rating: B) at par to yield 7.143% and 7.696%, respectively, according to a market source on Friday.
The $1.25 billion of notes due 2030 priced with an initial spread to U.S. Treasuries of plus 425 basis points, which was below guidance of Treasuries plus 437.5 bps and initial price thoughts of Treasuries plus 450 bps.
The $1.25 billion of notes due 2038 priced to yield Treasuries plus 455 bps, which was below guidance of 475 bps over Treasuries and initial price talk of 487.5 bps.
Bookrunners for the notes are Citigroup and Standard Chartered plc.
Pricing of the Rule 144A and Regulation S notes was considered cheap, and the issues traded up upon release for secondary market dealings. A listing on the London Stock Exchange is expected.
| Issuer: | The Federal Republic of Nigeria
|
| Amount: | $2.5 billion
|
| Description: | Notes
|
| Bookrunners: | Citigroup and Standard Chartered plc
|
| Trade date: | Feb. 15
|
| Settlement date: | Feb. 23
|
| Rating: | S&P: B
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| 12-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Feb. 23, 2030
|
| Coupon: | 7.143%
|
| Price: | Par
|
| Yield: | 7.143%
|
| Spread: | Treasuries plus 425 bps
|
| Price talk: | Guided to Treasuries plus 437.5 bps from initial price talk of Treasuries plus 450 bps
|
|
|
| 20-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Feb. 23, 2038
|
| Coupon: | 7.696%
|
| Price: | Par
|
| Yield: | 7.696%
|
| Spread: | Treasuries plus 455 bps
|
| Price talk: | Guided to Treasuries plus 475 bps from initial price talk of Treasuries plus 487.5 bps
|
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