The Federal Republic of Nigeria has successfully launched a $2.2 billion Eurobond in the international market, generating an impressive $9 billion in investor demand. The bonds are divided into two tranches: a 6.5-year bond maturing in 2031 and a 10-year bond maturing in 2034.
The Debt Management Office (DMO) disclosed that $700 million was allocated to the 2031 tranche, while $1.5 billion was assigned to the 2034 tranche. The bonds were priced at a coupon and re-offer yield of 9.625% for the 6.5-year tranche and 10.375% for the 10-year tranche.
The bond issuance attracted a broad spectrum of investors from the United Kingdom, North America, Europe, Asia, the Middle East, and Nigeria, signaling strong confidence in Nigeria’s macroeconomic policies, as well as its fiscal and monetary management. The order book peaked at $9 billion, nearly four times the amount offered, demonstrating robust investor interest.
Finance Minister Olawale Edun described the issuance as a reflection of increasing confidence in President Bola Ahmed Tinubu’s economic stabilization efforts. He pointed out that the high demand aligns with Nigeria’s goal of diversifying its funding sources and strengthening its presence in international financial markets.
Central Bank Governor Olayemi Cardoso noted that the successful issuance indicates Nigeria’s improved liquidity and resilience in the international credit market, enhancing the country’s ability to meet its financing needs.
Patience Oniha, Director-General of the DMO, hailed the pricing as a “landmark achievement,” emphasizing the transparency and credibility maintained in Nigeria’s international financial dealings.
The proceeds from the Eurobond will primarily be used to address the 2024 fiscal deficit and support budgetary requirements. The bonds will be listed on the UK Listing Authority, the London Stock Exchange, FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited.
This successful Eurobond issuance underscores Nigeria’s ongoing strategy to balance its fiscal framework while positioning the country for sustainable economic growth.
