Nigeria has successfully raised $2.2 billion through Eurobonds in the international capital markets to finance its 2024 budget deficit.
The Debt Management Office (DMO) announced on Monday that the bonds, with maturities in 2031 and 2034, were issued in two tranches: $700 million for the 2031 maturity and $1.5 billion for the 2034 maturity.
The bonds were priced with coupon rates of 9.625 per cent and 10.375 per cent, respectively.
The DMO stated that proceeds from the issuance would support the government’s fiscal needs for 2024, reflecting Nigeria’s continued engagement with global financial markets.
The transaction attracted significant interest, with a peak order book exceeding $9 billion, demonstrating strong support from investors worldwide, including those in the United Kingdom, North America, Europe, Asia, the Middle East, and Nigeria.
A diverse range of investor classes participated, including fund managers, insurance and pension funds, hedge funds, and banks.
Reacting to the successful issuance, the Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, hailed the development as a sign of increasing investor confidence in the administration of President Bola Ahmed Tinubu. Edun said the funds would contribute to stabilising the Nigerian economy and fostering sustainable, inclusive growth.
Central Bank Governor Olayemi Cardoso echoed this sentiment, noting that the outcome underscores investor confidence in Nigeria’s improving liquidity position and its ability to maintain access to international financing.
The bonds are listed on the London Stock Exchange’s regulated market, FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited. Key players in the issuance included Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank, with FSDH Merchant Bank Limited serving as Financial Adviser.
The proceeds are expected to play a crucial role in addressing Nigeria’s fiscal challenges and supporting its broader economic goals.
