Nigerian government to redeem $500m Eurobond – DMO

The Debt Management Office (DMO) has announced that Nigeria’s 6.75 per cent $500M JAN 2021 Eurobond, which matured on January 28, 2021 was to be redeemed accordingly. 

The DMO announced this yesterday stating that, “By this development, Nigeria continues to demonstrate in practical terms, its commitment towards honouring all its debt service obligations as and when due.”

For this purpose, funds have been made available by the Federal Government of Nigeria to the Fiscal Agent to repay the principal sum of $500 million and final interest payment due on the Eurobond.

The 6.75% $500M JAN 2021 Eurobond which was issued in January 2011 was Nigeria’s first foray into the International Capital Market (ICM).

The issuance of the Eurobond enabled Nigeria to diversify its sources of funding as it successfully raised a total of $10.668 billion from the international capital market thereafter, making a total of $11.168 billion to finance the implementation of the Federal Budgets.

According to the DMO, the Eurobond has significantly contributed to Nigeria’s External Reserves. 

“Equally important, a number of private sector operators, notably Nigerian Banks, have raised US Dollar funds from the ICM following Nigeria’s debut Eurobond in January 2011.”

Suzan O/ NAN