Nigeria’s subnational bonds market has grown rapidly, becoming the largest in Africa in yields with $2.8 billion in outstanding domestic debt at end-2012 compared with $1.6 billion in South Africa. Some recent Nigerian corporate international issues include the $500 million five-year Eurobond offer by Guaranty Trust Bank, Nigeria, in May 2011.”
According to the IMF, reasons behind the burgeoning performance of Nigeria’s bond market range from necessary reforms and technical steps by the Nigerian authorities to recent successful corporate international issues.
Although the proceeds from the bond represented a relatively minor source of capital financing, the Eurobond’s trading in the secondary market has created a benchmark for future borrowing by the sovereign, subnationals, and firms, the IMF revealed.
It is believed that effective road shows facilitated the building of a strong network of potential investors. The road shows in Europe and the United States were geared towards wooing potential investors and telling them about Nigeria’s economic prospects and the government’s economic policy agenda. The result of the shows was, unarguably, spectacular