UPDATE 5-Nigeria's debut Eurobond heavily oversubscribed

Reuters

21 January 2011

UPDATE 5-Nigeria's debut Eurobond heavily oversubscribed 

* Issue oversubscribed, priced at 7.0 pct yield

* Debt ratios low, growth robust

* Fall in foreign reserves worries some investors

LAGOS, Jan 21 (Reuters) - Nigeria issued a $500 million debut Eurobond on Friday with a 7.0 percent yield in a deal that was heavily oversubscribed, as appetite for high-yielding assets outweighed concern about its depleted oil savings.

Investors from 18 countries spanning Europe, the United States, Asia and Africa took up the offer, which was 2.5 times oversubscribed, Finance Minister Olusegun Aganga said.

"This transaction clearly puts Nigeria on the global map. We now have a transparent and internationally observable benchmark against which international investors can accurately price risk," Aganga said, forecasting a rise in foreign investment into sub-Saharan Africa's second-biggest economy.

The successful issue by Africa's top oil exporter, months ahead of elections, could reassure others on the continent of the strength of demand for African debt, convincing them to press ahead with similar but delayed plans.