Eurobonds: Nigeria raises $1.25 billion in International Capital Market

Nigeria has officially raised 1.25 billion dollars through the issuance of a seven-year Eurobonds in the International Capital Market (ICM).

The Director-General of the Debt Management Office (DMO), Patience Oniha, disclosed this in a statement.

Oniha said that with this feat, Nigeria has become the first African country to access the ICM in 2022.

According to her, the country’s ability to access the Eurobonds at this time was a confirmation of her established presence with the ICM and engagement with investors on a continuous basis.

She said that the proceeds of the bonds would be used to finance the budget and bridge infrastructural deficits.

“The offer was launched at an initial price thoughts of 8.75 percent per annum and on the back of strong investor demand, Nigeria was able to reverse the price guidance to 8.5 percent per annum.

“The order book, which included many quality investors in the U.S, Europe and Asia, continued to grow, reaching a peak of four billion dollars. 

“With this strong investor interest the price was tightened at 8.37 percent per annum.

“The order book still remained high at 3.67 billion dollars and still retained quality investors.

“Nigerian investors also participated in the offer with a total subscription of 60 million dollars,” she added.

She also noted that the Eurobonds would also strengthen economic recovery and contribute directly and in full to the level of Nigeria’s External Reserves.

The DMO had earlier revealed that Nigeria’s total debt stock as at December 2021 was N39.55 trillion.

Source: NAN