Nigeria has raised $2.2 billion through its latest Eurobond auction, marking a pivotal moment in the country’s ongoing efforts to address its growing fiscal deficit.
This auction, which saw the issuance of two bonds with varying tenors, follows the government’s return to the international capital markets for the first time since March 2022.
The funds raised will primarily be used to support Nigeria’s 2024 budget, which is under strain due to persistent revenue shortfalls and mounting public spending.
According to sources, who spoke to Naijaonpoint on Monday, while Nigeria recorded a total subscription of $8.8 billion, only $2.2 billion was allotted.
The allotments are $700 million for the 6.5-year bond priced at 9.625% and a larger $1.5 billion for the 10-year bond priced at 10.375%.
The bonds were issued under the Regulation S/144A structure, making them available to both U.S. and international investors.
This oversubscription reflects continued investor interest in Nigerian debt, though the yields have raised concerns about the country’s financial stability.
Naijaonpoint earlier reported that Nigeria is returning to the international capital markets for the first time in over two years with a significant Eurobond offering, aimed at funding the country’s 2024 budget deficit.
The Eurobond sale is managed by a consortium of international and domestic financial institutions, including Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., and Standard Chartered Plc, with Chapel Hill Denham Advisory Limited acting as the Nigerian bookrunner.