Nigeria Raises $2.2 Billion Through Eurobonds, Attracts Strong Investor Confidence 

Nigeria Raises $2.2 Billion Through Eurobonds, Attracts Strong Investor Confidence 

JOEL OLADELE, Abuja 

The Federal Republic of Nigeria has successfully priced $2.2 billion in Eurobonds with maturities set for 2031 (6.5-year) and 2034 (10-year), marking a notable achievement in the international capital markets.

The issuance took place on December 2, 2024, with a remarkable peak order book exceeding $9.0 billion, indicating strong investor interest.

According to a statement by the Debt Management Office, Abuja, of the total, $700 million was allocated to the 2031 bonds, and $1.5 billion to the 2034 bonds, with coupon rates set at 9.625% and 10.375%, respectively.

This robust demand came from a diverse pool of investors, including Fund Managers, Insurance and Pension Funds, Hedge Funds, Banks, and various Financial Institutions from regions such as the United Kingdom, North America, Europe, Asia, and the Middle East.

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, expressed confidence in the nation’s economic management.

He stated, “Today’s successful issuance signposts increasing confidence in the ongoing efforts of President Bola Ahmed Tinubu’s administration to stabilize the Nigerian economy and position it on the path of sustainable and inclusive growth for the benefit of all Nigerians.”

Echoing this sentiment, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, commented on the significance of the issuance by saying, “This outcome underscores the growing confidence of investors in the resilience of the Nigerian credit. It highlights our improved liquidity position and continued access to international markets to support the financing needs of the government.”

Patience Oniha, Director-General of the Debt Management Office (DMO), remarked on the landmark achievement, commenting, “With the successful pricing of the Notes, Nigeria has registered a significant milestone in the international capital market.

“The overwhelming support, reflected by an order book size of approximately 4.18 times the offer amount, helped us achieve competitive pricing for the 6.5-year and 10-year Notes.”

These Eurobonds are set to be listed on the official list of the UK Listing Authority and made available for trading on the London Stock Exchange, as well as on the FMDQ Securities Exchange Limited and the Nigerian Exchange Limited. The proceeds from this issuance will be directed towards financing the 2024 fiscal deficit and supporting government budgetary needs.

The importance of Eurobonds as a dollar-denominated debt remains significant for Nigeria, providing a crucial source of foreign capital needed for development finance amidst economic challenges.

The bonds are expected to settle on December 9, 2024, marking another step forward for Nigeria in enhancing its financial standing internationally.