The Debt Management Office (DMO) has disclosed that Nigeria’s $2.25 billion eurobond issued in the international capital market (ICM) attracted investors’ peak orderbook of over $13 billion, “marking the country’s largest-ever orderbook”.
The DMO disclosed this in a statement.
An orderbook is the total amount of investor interest or bids in a debt or equity offering.
The eurobond issuance indicates a 477 per cent oversubscription, despite the recent threat (which had rattled the market) by US President Donald Trump of military action in Nigeria over claims of Christian genocide.
“The Federal Republic of Nigeria (the “Republic”) successfully priced USS2.35 billion in Eurobonds (the”Notes”) maturing in 2036 (Long 10-year) and 2046 (Long 20-year) in the international capital markets, with USS 1.25 billion and US 1.10 billion placed in the 2036 and 2046 maturities, respectively,” the statement reads.
According to the agency, the 10-year bond and the l20-year notes were priced at yields of 8.6308 percent and 9.1297 percent, respectively.
“The transaction attracted a peak orderbook of over 13 billion, marking the largest ever orderbook achieved by the Republic,” DMO said.
It added that: “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.”
The agency said Nigeria was pleased to draw broad investor participation from various jurisdictions, including the United Kingdom, North America, Europe, Asia, and the Middle East.
The debt office also said the country received participation from Nigerian investors, describing the interest as ” an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management”.
The DMO said the notes would be admitted to the official list of the UK Listing Authority and will be available for trading on the London Stock Exchange’s regulated market, the FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited (NGX).
“The proceeds from this Eurobond issuance will be used to finance the 2025 fiscal deficit and support the government’s other financing needs,” the debt office said.
“Nigeria mandated Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan and Standard Chartered Bank as Joint Bookrunners. FSDH Merchant Bank Limited acted as Financial Adviser on the issuance.”
In his remarks on the transaction, President Bola Ahmed Tinubu expressed delight over 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 was quoted as saying.
According to the statement, Wale Edun, minister of finance and coordinating minister of the economy, said the successful market access demonstrates the international community’s sustained confidence in Nigeria’s reform trajectory and its commitment to sustainable and inclusive growth.
On her part, Patience Oniha, director-general of the DMO, noted that Nigeria’s successful return to the eurobond market to raise long-term funding in support of Tinubu’s growth agenda represents a major milestone for the country.
She added that the transaction aligns with the DMO’s objectives of supporting national development and diversifying funding sources.
On October 16, Sanyade Okoli, special adviser to the president on finance and the economy, unveiled Nigeria’s plans to issue a $2.3 billion eurobond in its refinancing drive.
