The federal government has expressed excitement over the acceptance of its $2.2 billion Eurobond by investors in the international capital market at a coupon of over 10 per cent.
The Nigerian government auctioned the Eurobond to finance the deficit in the 2024 budget worth about N9.1 trillion.
The exercise was conducted by the Debt Management Office (DMO) after the country’s parliament authorised President Bola Tinubu to borrow the fresh capital.
The debt office said in a statement on Monday that the bonds were issued in two tenors of 6.5 years maturing in 2031 and 10 years maturing in 2034, with a peak order book of more than $9 billion.
“The Federal Republic of Nigeria successfully priced $2.2 billion in Eurobonds maturing in 2031 (6.5-year) and 2034 (10-year) in the international capital markets on December 2, 2024, with $700 million and $1.5 billion placed in the 2031 and 2034 maturities, respectively,” the statement said, adding that, “The 6.5-year and the 10- year notes were priced at a coupon and re-offer yield of 9.625 per cent and 10.375 per cent, respectively.”
“Nigeria is pleased to have attracted a wide range of investors from multiple jurisdictions including the United Kingdom, North America, Europe, Asia, and the Middle East and participation from Nigerian investors, which it views as an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management,” it added.
The DMO disclosed that the papers would be admitted to the official list of the UK Listing Authority and available to trade on the London Stock Exchange’s regulated market, the FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited.
Commenting on the development, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, said the successful issuance signals increasing confidence in the ongoing efforts of the government to stabilize the Nigerian economy and position it on the path of sustainable and inclusive growth for the benefit of all Nigerians.