Nigeria, according to the Debt Management Office (DMO’s) latest report has raised another $4bn through Eurobonds.
The DMO disclosed this in a statement on its website on Tuesday titled ‘Nigeria raises $4bn through Eurobonds’.
This would raise Nigeria’s Eurobond debt from $10.37bn as of the end of March according to figures obtained from DMO’s external debt stock figure to $14.37bn.
The statement read: “After an intensive two days of virtual meetings with investors across the globe, Nigeria has raised the sum of $4bn through Eurobonds.
“The order book peaked at $12.2bn which enabled the Federal Government of Nigeria to raise $1bn more than the $3bn it initially announced.
“This 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 demonstrated confidence in Nigeria.”
The DMO added that the Eurobonds were issued in three tranches which were seven-year $1.25bn at 6.125 per cent P.A; 12-year $1.5bn at 7.375 per cent P.A; and 30-year $1.25bn at 8.25 per cent P.A.
According to it, “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 Eurobond were issued as part of the new external borrowing in the 2021 Appropriation Act, the raising of $4bn through Eurobonds provides a significant amount of funds to finance projects in the Act, thus contributing to the implementation of the 2021 Appropriation Act.”
This medium previously reported that the federal government had disclosed plans for a eurobond issuance at the international capital market (ICM) to raise $6.2 billion for financing the 2021 budget.
The Eurobond issuances are debt instruments denominated in a different currency than the local one of the country where the bond is issued.
The Debt Management Office (DMO) in a statement on Thursday said the virtual meetings with investors (both local and foreign) will hold on September 17 and September 20, 2021.