Nigeria Raises $4Bn Through Eurobonds, Says DMO

*Ms Patience Oniha, DG, Debt Management Office.
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By Ngozi Ekhator

 

After an intensive two days of virtual meetings with investors across the globe, Nigeria has raised the sum of USD4 billion through Eurobonds, this was revealed by Debt Management Office (DMO) in a statement on Wednesday.

 

The DMO said the Order Book peaked at USD12.2 billion which enabled the Federal Government of Nigeria (FGN) to raise USD1 billion more than the USD3 billion it initially announced.

 

This exceptional performance has been described as “one of the biggest financial trades to come out of Africa in 2021” and “an excellent outcome”.

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Bids for the Eurobonds were received from
investors in Europe and America, as well as Asia.

 

There was also good participation by local investors. The size of the Order Book and the quality of investors demonstrates confidence in Nigeria.

 

The Eurobonds were issued in three  tranches, details below:
7 years – USD1.25 billion at 6.125% p.a
12 years – USD1.5 billion at 7.375% p.a
30 years – USD1.25 billion at 8.25% p.a

The long tenors of the Eurobonds and the spread across different maturities are well aligned with Nigeria’s Debt Management Strategy, 2020 – 2023.

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Since the Eurobonds were issued as part of the New External Borrowing in the 2021
Appropriation Act, the raising of USD4 billion through Eurobonds provides a significant amount of funds to finance projects in the Act, thus contributing to the implementation of the 2021 Appropriation Act.

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