Distinguished ladies and gentlemen:
It gives me great pleasure to welcome you to the Nigerian Stock Exchange (The Exchange) for the Fact Behind the Listing Presentation of the maiden One Billion Dollars ($1bn) Federal Government of Nigeria (FGN) Eurobond.
On behalf of the National Council, Management and Staff of The NSE, I congratulate the Management of the Debt Management Office (DMO) on the remarkable success of this first Eurobond issuance since 2013, which was 780% oversubscribed - with investors cutting across Hedge Funds, Pension Funds, Insurance Companies, Banks and other institutional investors. I also congratulate the Financial Adviser - StanbicIBTC Capital - and other transaction parties who helped achieved this laudable feat.
Nigeria’s infrastructural gaps have long been identified as probably the core constraint limiting the realisation of our economic potential. The Federal Government has also underpinned its focus on developing the nation’s capital stock as a panacea for driving economic growth and development. Critical to the achievement and sustainability of our growth and developmental objectives is a well- functioning and efficient capital market; enabling aggregation of – and access to - long term capital to support business and developmental needs.
Today, The Exchange is admitting to its daily official list 1 million units of FGN Eurobonds at a par value of $1,000 per unit. This event marks the first listing of a sovereign dollar denominated instrument in the Nigerian Capital Market. It is a testament of the Federal Government’s and DMO’s commitment to the growth and enhancing the depth of the Nigerian Capital Market.
As an FX denominated instrument, the Eurobond will trade and settle in its currency of issuance (USD); thus setting the foundation for multicurrency capital raising and trading in the domestic market. This will open up hybrid capital raising options and create additional portfolio diversification opportunities for investors.
This listing of the $1bn FGN Eurobond, which marks our fifth listing on the bourse in 2017, lends credence to the NSE’s commitment to continuous innovation and championing the growth of the Nigerian Capital Market. The Exchange offers issuers access to a highly diversified investor base, deep pools of capital, a wide and growing breadth of products to meet their specific business financing needs, as well as global visibility to support their corporate ambitions; whilst also ensuring adequate protection, transparency, and liquidity to investors.
It is against this backdrop that I wish to encourage everyone here to take advantage of the vast opportunities by partaking in and contributing to the growth of the markets through product innovations that meets strategic investors’ needs and appetite. I also urge dealing members to continually make available educative promotional materials that will help investors make informed
Once again, I commend all parties to the issue, the Debt Management Office and the Federal Government of Nigeria on this milestone event. I also thank everyone else who has provided support in making today a reality.
The Exchange promises to continue its collaboration with the Government and all market stakeholders to collectively enhance market depth and investor education/awareness. As we continue to deliver on several market development initiatives in 2017, we strive to be the African Exchange of choice for issuers and investors by enhancing regulation, transparency, liquidity and ease of access to capital.
Thank you.
Ade Bajomo
ED, Market Operations and Technology
