The Debt Management Office (DMO) reports that Nigeria has successfully re-entered the Eurobond market, raising $2.2 billion despite robust investor demand totalling over $9 billion.
The nation attracted a wide range of investors from all over the world, including those from the United Kingdom, North America, Europe, Asia, the Middle East, and Nigeria, by issuing a 6.5-year bond at 9.625% and a 10-year bond at 10.375%.
This oversubscription underscores strong investor confidence in Nigeria’s economic policies and prudent fiscal and monetary management, said the DMO. The peak order book reached $9 billion, highlighting robust demand across different investor categories such as fund managers, insurance and pension funds, hedge funds, banks, and other financial institutions.
Government Reaction
Speaking on the successful issuance, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, noted the outcome reflects growing confidence in President Bola Ahmed Tinubu’s administration.
“Today’s issuance signals increasing confidence in our efforts to stabilize the economy and chart a path for sustainable and inclusive growth,” Edun said. He emphasized the importance of diversifying funding sources and deepening Nigeria’s engagement with international capital markets.
Similarly, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, remarked that the outcome highlights the resilience of Nigeria’s credit and improved liquidity, affirming the country’s continued access to international financing to meet its economic needs.
DMO’s Perspective
Patience Oniha, Director-General of the DMO, called the issuance a landmark achievement. “The size of the order book, approximately 4.18 times the offered amount, and the strong investor base enabled favorable pricing of the 6.5-year notes at 9.625% and the 10-year notes at 10.375%,” Oniha stated.
She added that the DMO remains committed to maintaining transparency and appreciates the support of both international and domestic investors.
Utilization and Market Listing
The proceeds from the Eurobond issuance will be used to finance Nigeria’s 2024 fiscal deficit and support the government’s budgetary priorities. The notes will be listed on the UK Listing Authority’s official list and available for trading on the London Stock Exchange, FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited.
Execution and Advisors
As joint bookrunners, Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank helped to close the deal. The financial adviser was FSDH Merchant Bank Limited.
