NationalMirror US biggest subscriber to Nigeria’s $1bn Eurobond – Okonjo-Iweala CHIDI UGWU July 4, 2013 The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okojo-Iweala has said that investors from the United States led in the subscription of the Federal Government’s $1 billion Nigerian bond which was oversubscribed four times. “The quality of the investors is very high, the majority of the investors are from the United States, then followed by Europe, especially the United kingdom, and then Asia, so those are the top three investors and it is a long list, and because it was oversubscribed we could not even meet the demand of some them, over 200 of the investors were not able to any share of the because it was oversubscribed” The minister noted that the issues were highly subscribed by top names in the business world including investors HSBC, Global Asset Management, Wellington Management Company, Blackrock among others. According to Okonjo-Iweala, the positive response to the bond which was oversubscribed four times by international investors including those in Europe, Asia and other regions of the world, is an indication of the strong perception that the fundamentals of the Nigerian economy remain strong despite some challenges. She said the $500 million five year bond was oversubscribed by 3.46 with the interest rate 5.125 percent while the 500 million ten year bond was oversubscribed by 4.451 with interest rate of 6.375 percent. The minister noted that this was much better than the rate obtained in 2011 when the country did 500 Eurobond indicating that people have more confidence on the economy. She said that bond was floated to support infrastructure projects across the country, adding that much of the money will be utilised to enhance power sector, and build gas pipeline from East part of the country to Western parts where a lot power station are without access to gas. “The floatation of a $1billion Eurobond which has been approved by the National Assembly as you know this money is designed to support infrastructure projects within the country. It is not for budget support but directly for infrastructure. Mostly to have enhanced power sector, you aware we are building gas pipeline from the East of the country where you have gas to the west where you have all these power stations without access to gas. We have already started building these stations we have set about $400 million. We are going to try and make sure that these investments are visible ones that Nigerians can see to ensure this money is utilised in a proper way,” she said. According to the minister stated government is excited because Nigeria went to the bond market and got four times over subscription in these turbulent economic times, and uncertain international bond market, underlying strength of the nation’s economy. She further disclosed that plans are underway to float before the end of this year a Diaspora bond targeting Nigerian citizens who live abroad but are desirous of investing the country. Okonjo-Iweala denied the report credited to her that the Nigeria’s economy was on the verge of collapse saying the report was false. “We are working in a collegial manner with the National Assembly; actually the headline that was put in the papers was wrong. There is no way I could go out and say that is going to collapse. The debate is going on”.
Posted on: Thu, 04 Jul 2013 07:24:46 +0000
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