Nigeria Raises $4 Billion Via Eurobonds

After an intensive two (2) days of virtual meetings with investors across the globe, Nigeria has raised the sum of USD4 billion through Eurobonds.
A statement from the Debt Management Office and made available to Economic Confidential in Abuja indicates that the Order Book peaked at USD12.2 billion which enabled the Federal Government of Nigeria (FGN) to raise USD1 billion more than the USD3 billion it initially announced.

According to the statement, the exceptional performance has been described as “one of the biggest financial trades to come out of Africa in 2021” and “an excellent outcome”. Bids for the Eurobonds were received from investors in Europe and America, as well as Asia. There was also good participation by local investors. The size of the Order Book and the quality of investors demonstrates confidence in Nigeria.

The Eurobonds were issued in three (3) tranches, details below:

7 years   –    USD1.25 billion at 6.125% p.a

12 years   –    USD1.5 billion at 7.375% p.a

30 years   –    USD1.25 billion at 8.25% p.a

The long tenors of the Eurobonds and the spread across different maturities are well aligned with Nigeria’s Debt Management Strategy, 2020 – 2023.

Since the Eurobonds were issued as part of the New External Borrowing in the 2021 Appropriation Act, the raising of USD4 billion through Eurobonds provides a significant amount of funds to finance projects in the Act, thus contributing to the implementation of the 2021 Appropriation Act.