Abuja: The Federal Government of Nigeria has successfully priced $2.35 billion in Eurobonds maturing in 2036 and 2046 in the international capital market.
According to News Agency of Nigeria, the Debt Management Office (DMO) announced that $1.25 billion and $1.10 billion of the Eurobonds are allocated to the 2036 and 2046 maturities, respectively.
The DMO detailed that the Long 10-year bond and the Long 20-year notes were priced at yields of 8.6308 percent and 9.1297 percent respectively. The issuance attracted a wide array of investors from regions including the United Kingdom, North America, Europe, Asia, the Middle East, and Nigeria itself. This diversity in investment sources is seen as a testament to the ongoing investor confidence in Nigeria’s macro-economic policy framework and fiscal management.
The transaction garnered a peak orderbook of over $13 billion, marking the largest ever orderbook achieved by Nigeria. This milestone highlights the robust support for the issuance across various geographies and investor classes, including fund managers, insurance and pension funds, hedge funds, banks, and other financial institutions.
President Bola Tinubu expressed satisfaction with the strong investor confidence in Nigeria and the Federal Government’s reform agenda. Tinubu emphasized that this development reaffirms Nigeria’s status as a credible participant in the global capital market.
Finance Minister Wale Edun noted that the successful market access underscores the international community’s confidence in Nigeria’s reform path and the government’s commitment to sustainable growth. Patience Oniha, the DMO’s Director-General, praised Nigeria’s ability to tap into the Eurobond market for long-term funding to support the government’s growth initiatives. She mentioned that the notes would be listed on the UK Listing Authority’s official list and available for trading on the London Stock Exchange’s regulated market, as well as the FMDQ Securities Exchange Limited and the Nigerian Exchange Limited.
The proceeds from the Eurobond issuance are earmarked to finance the 2025 fiscal deficit and support other government financing needs.