Nigeria Prices $2.35bn in 10-year, 20-year Eurobonds
The Federal Government of Nigeria has successfully priced 2.35 billion dollars in Eurobonds maturing in 2036 (Long 10-year) and 2046 (Long 20-year) in the international capital market.
According to a statement issued by the Debt Management Office (DMO), 1.25 billion dollars and 1.10 billion dollars of the Eurobonds are placed in the 2036 and 2046 maturities, respectively.
The office said that the Long 10-year bond and the Long 20-year notes were priced at coupons/yields of 8.6308 per cent and 9.1297 per cent respectively.
It said that Nigeria was pleased to have attracted a wide range of investors from multiple jurisdictions, including the United Kingdom, North America, Europe, Asia, Middle East and participation from Nigerian investors.
It said that the country viewed the feat as an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management.
“The transaction attracted a peak orderbook of more than 13 billion dollars, marking the largest ever orderbook achieved by the country.
“This significant milestone underscores the strong support for the transaction across geography and investor class.
“With respect to investor class, demand came from a combination of fund managers, insurance and pension funds, hedge funds, banks and other financial institutions,” it said.
Meanwhile, President Bola Tinubu, in his remarks, expressed delight in the strong investor confidence demonstrated in the country and the reform agenda of the Federal Government.
According to Tinubu, this development reaffirms Nigeria’s position as a recognised and credible participant in the global capital market.
The Minister of Finance and Co-ordinating Minister of the Economy, Mr. Wale Edun, said that the successful market access demonstrated the international community’s continued confidence in Nigeria’s reform trajectory.
Edun said that it also demonstrated confidence on the Federal Government’s commitment to sustainable, inclusive growth.
Patience Oniha, the Director-General of the DMO, lauded the country’s ability to access the Eurobond market to raise long term funding needed to support the growth agenda of the Federal Government.
“It is a major achievement for the country, and is consistent with the DMO’s objectives of supporting development and diversifying funding sources,” Oniha said.
She said that the notes would be admitted to the official list of the UK Listing Authority and available to trade on the London Stock Exchange’s regulated market.
“They will also be available on the FMDQ Securities Exchange Limited and the Nigerian Exchange Limited.
“The proceeds from this Eurobond issuance will be used to finance the 2025 fiscal deficit and support the government’s other financing needs,” she said.
She said that Nigeria mandated Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan and Standard Chartered Bank as Joint Bookrunner, while. FSDH Merchant Bank Limited acted as Financial Adviser on the issuance. NLNG, NCDMB launch ICT Hub to Boost Tech Skills in Nigeria
