The federal government has successfully raised the sum of $4 billion through sale of Eurobonds.
This was disclosed in a statement by the Debt Management Office, DMO.
The agency said the deal was concluded after an intensive two-days of virtual meeting with investors across the globe and that the deal attracted good participation by foreign and local investors who bought into the 3-tranch offer that spans between seven and 30 years.
The DMO said the Offer Book peaked at $12.2 billion which enabled the Nigerian Government to raise $1 billion more than the $3 billion it initially announced.
It described the performance as exceptional, noting that the deal was one of the biggest financial trades to come out of Africa in 2021, and represents “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 demonstrates confidence in Nigeria,” the nation’s debt managing agency added.
It said the Eurobonds were issued in three tranches as follows:
7 years -USD1.25 billion at 6.125% p.a
12 years -USD1.5 billion at 7.375% p.a
30 years -USD1.25 billion at 8.25% p.a
According to DMO, 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 Eurobonds were issued as part of the New External Borrowing in the 2021 Appropriation Act, the raising of USD4 billion through Eurobonds provides a significant amount of funds to finance projects in the Act, thus contributing to the implementation of the 2021 Appropriation Act”, the DMO said.