Morning Commentary: Nigeria’s new 10-, 30-year bonds lift in trade; Chexim launches four tranches

By Rebecca Melvin

New York, Nov. 21 – The Federal Republic of Nigeria’s newly priced 6½% notes due 2027 and 7 5/8% notes due 2047 traded up strongly early Tuesday after the sovereign priced $1.5 billion of each tranche well below initial talk, according to a market source.

The Nigeria 2027 notes were quoted at 101 5/8 bid, 101¾ offered and the Nigeria 2047 notes at 102¼ bid, 102¾ offered in the early going.

The deals met with significant demand from investors attracted to the high yield and decent value of the bonds as well as the issuer credit boosted by its strong oil reserves.

Citigroup and Standard Chartered plc were joint bookrunners of the Rule 144A and Regulation S eurobonds (expected ratings: B/B+).

There was a flurry of activity in the emerging Asia primary market as the Export-Import Bank of China (Chexim) launched a combined $2.1 billion in five-, 10- and 30-year notes and a €1 billion tranche of 5.5-year notes.

Also Shenzhen International Holdings Ltd. priced $300 million perpetual step-up notes at par to yield 185 basis points over U.S. Treasuries, and an Indian corporate deal priced while a second announced a roadshow.

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