Lagos, January 21, 2011– Proshare is able to confirm that the Eurobond offer by the Federal Republic of Nigeria has been successfully concluded today.

 

We expect that a total of $1.3bn (approx.) has been booked. The price should come out approx at 6.75%.

 

The transaction was 2.6x oversubscribed. The 10-year bond priced at a yield of 7% with an attractive coupon of 6.75% – but more remarkable is the exceptional quality and diversity of investors from 18 countries spanning Europe, the US, Asia and Africa.

 

This is a major success and milestone for the country and economy.

 

Investors were impressed by Nigeria’s credit story and were very keen to participate in the offering.

 

Going forward, it is expected that the nations’ corporate entities can now, more easily, access well-priced long term financing from the International Capital Markets to fund economic opportunities such as infrastructure development.

 

This transaction clearly puts Nigeria on the global map – and we now have a transparent and internationally observable benchmark against which international investors can accurately price risk.

 

The expectation is for an increase in capital inflows and FDI into the economy.

 

Source: Proshare