500 eurobond for whose benefit punch news
A juicy news story!
According to Punch News, the 500 eurobond is a debt instrument issued by the Federal Government of Nigeria to raise funds for various development projects. Here's a brief summary:
What is a Eurobond? A Eurobond is a type of bond issued by a non-EU country in the international capital market, denominated in a foreign currency (in this case, euros). It's a way for governments or companies to raise funds from international investors.
Nigeria's 500 Eurobond In 2020, the Nigerian government issued a 500 eurobond to raise funds for various development projects, including infrastructure development, power generation, and refinancing of existing debts. The bond was issued in two tranches: a 7-year tranche with a coupon rate of 6.5% and a 12-year tranche with a coupon rate of 7.5%.
Who benefits? The benefits of the 500 eurobond are twofold:
- Nigeria's economy: The funds raised from the bond issue will be used to finance various development projects, which will help stimulate economic growth, create jobs, and improve living standards in Nigeria.
- International investors: The bond offers international investors a chance to invest in Nigeria's economy, diversify their portfolios, and earn a return on their investment.
Key details
- Face value: 500 million euros
- Coupon rate: 6.5% (7-year tranche) and 7.5% (12-year tranche)
- Maturity date: 2027 (7-year tranche) and 2032 (12-year tranche)
- Issuer: Federal Government of Nigeria
- Underwriters: Standard Chartered Bank, Citigroup, and others
I hope this summary helps!