Sizes & Amounts

What amount is currently outstanding by Nigerian issuers (in USD billions)?

What amount is currently outstanding per Nigerian issuer (in USD millions)?

What do nominal value, face value, principal value and total cash consideration mean?

Nominal value is the same as face value. Quoted trading sizes are always on a nominal basis unless specifically mentioned otherwise.

For example, if an investor holds $1,000,000 in a Eurobond that pays a 10% coupon per annum, the total coupon the investor receives will be $100,000 per annum.

The total cash consideration is the total amount of cash an investor needs to buy a Eurobond. This therefore includes accrued interest.

The 2025 Republic of Nigeria Eurobond is used as an example in the below table.

Please see below for a further illustration.

What is the minimum amount needed to invest in Eurobonds?

When Eurobonds are issued, a minimum nominal amount is set. At present, $200,000 nominal is the threshold for all Nigerian Eurobonds with a $1,000 increment thereafter. There is one exception, which is Nigeria’s June 2022 Diaspora bond which has a nominal minimum of $2,000.

Nominal trading sizes below $200,000 are possible, either through the purchase of a structured note or a so-called “buy/sell-back” process. The latter is more common and largely depends on dealer willingness and inventory position.

Nominal trading sizes below the set minimum as commonly referred to as “fractional” or “sub-nominal” trading sizes. An example is provided below.

Say an investor wishes to purchase $100k nominal of the 2025 Republic of Nigeria Eurobond. This Eurobond has a $200k minimum and therefore every trade needs to be $200k or more in order to be executed and settled. In this case, the investor can purchase $300k and simultaneously sell back $200k in order to end up with the desired $100k. 

Fractional trades do not happen often and are the discretion of the dealer to execute.