Nigeria has successfully raised $2.35 billion from the international capital markets through a dual-tranche Eurobond issuance, attracting orders worth $13 billion — an oversubscription of 453 per cent or $10.65 billion.
According to a statement from the Debt Management Office (DMO), the Federal Republic of Nigeria priced $1.25 billion in 2036 (Long 10-year) bonds and $1.10 billion in 2046 (Long 20-year) bonds, at coupon rates of 8.625% and 9.125%, respectively.
The issuance was priced below initial yield guidance and compares favourably to the 10.375% rate Nigeria paid on its last $1.5 billion 10-year Eurobond issued in December.
“Nigeria is pleased to have attracted a wide range of investors from multiple jurisdictions, including the United Kingdom, North America, Europe, Asia, the Middle East, and Nigerian investors,” the DMO said.
“This reflects continued investor confidence in the country’s sound macroeconomic policy framework and prudent fiscal and monetary management.”
The transaction marked Nigeria’s largest-ever order book, with strong demand from fund managers, pension funds, hedge funds, insurance firms, banks, and other financial institutions.
President Bola Tinubu hailed the successful issuance as a sign of confidence in his administration’s reform agenda.
“We are delighted by the strong investor confidence demonstrated in our country and our reform agenda. This development reaffirms Nigeria’s position as a recognised and credible participant in the global capital market,” the president stated.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, noted that the outcome demonstrates the international community’s confidence in Nigeria’s economic reforms and commitment to inclusive growth.
Similarly, DMO Director-General, Patience Oniha, described the achievement as consistent with Nigeria’s goal of diversifying its funding sources and supporting national development.
The Eurobond Notes will be listed on the London Stock Exchange, FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited.
Proceeds from the issuance will be used to finance the 2025 fiscal deficit and meet other government financing needs.
Nigeria appointed Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank as Joint Bookrunners, while FSDH Merchant Bank Limited served as Financial Adviser on the transaction.
