Nigeria Raises $900 Million In First Local Dollar-Bond Sale
- High yield, hedge against naira decline lures investors
- RenCap Africa says Nigeria may repeat ‘easy source of funding’
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Nigeria’s government raised $900 million in its first domestic sale of dollar-denominated bonds, almost double the targeted amount, as local investors clamored for the high-yielding securities to hedge against currency devaluation.
The five-year notes have a coupon of 9.75%, compared with a yield of about 9.67% at the market open for similar-maturity Nigerian eurobonds. The issue was 180% oversubscribed, the Lagos-based Africa Finance Corp., which served as global coordinator of the sale, said in an emailed statement on Wednesday.