Allen and Overy has advised Citigroup Global Markets Limited and Standard Chartered Bank on the issuance of USD3 billion of notes in two series by the Federal Republic of Nigeria under its Global Medium Term Note Programme, the largest ever bond issuance by Nigeria.

The notes, offered pursuant to Rule 144A and Regulation S, are listed on the London Stock Exchange.  They consist of a USD1.5 billion ten year series and a USD1.5 billion 30 year series with 6.500% and 7.625% coupons respectively. Proceeds from the bond issuance will be used to fund Nigeria’s budgeted expenditures and refinance its debt.

London based capital markets partners Jamie Durham and Sachin Davé led the team advising the banks as arrangers. Jamie commented: “The fact that this deal was upwards of three times oversubscribed is very significant. It underlines the seemingly insatiable investor appetite for higher yielding sovereign paper.”

Sachin added: “As Nigeria’s largest ever bond issuance, this is a landmark transaction. The mix of tenure durations places the nation in a good position to manage both its short term budget requirements as well as to establish a financing platform for strategic infrastructure development.”