Finance

Nigeria raises $1.25bn through Eurobonds

Tinubu's Govt Repays $500m Eurobond Borrowed By Jonathan

ABUJA – Nigeria has priced a USD 1.250 billion 7-year Eurobond in the International Capital Market (ICM), the Debt Management Office (DMO) has said.

In a statement, the DMO noted that this development makes Nigeria the first African country to access the ICM in 2022.

According to the statement, Nigeria’s ability to access the ICM at this time is a confirmation of her established presence in the ICM and engagement with investors on a continuous basis.

Read:  Access Bank’s $500m Eurobond oversubscribed by 200%.

The Offer was launched at an Initial Price Thoughts of 8.75% per annum and on the back of strong investor demand, Nigeria was able to revise the price guidance to 8.5% per annum. The Order Book continued to grow, reaching a peak of USD 4 billion.

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The Order Book included many quality investors in the United States, Europe and Asia. With this strong investor interest, the price was tightened to 8.375% per annum, the Order Book still remained high at USD 3.676 billion and retained the quality investors.

Nigerian investors also participated in the Offer with a total subscription of USD 60 million.

Read:  Telecoms records $417.5b inflow as MNOs earn N2.26tr in 2020.

The proceeds of the Eurobond will be used to finance critical capital projects in the Budget to bridge the deficit in infrastructure and strengthen Nigeria’s economic recovery. Equally important, it would contribute directly and in full to the level of Nigeria’s External Reserves.

Independent

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