Dailyreport
The Federal Republic of Nigeria attracted an amazing $9 billion in investor interest when it successfully introduced a $2.2 billion Eurobond to the global market.Investor interest in Nigeria’s Eurobond offering is $9 billion
A 6.5-year bond that matures in 2031 and a 10-year bond that matures in 2034 are among the two tranches of the bonds.
According to the Debt Management Office (DMO), the 2031 tranche received $700 million, and the 2034 tranche received $1.5 billion. For the 6.5-year and 10-year tranches, the bonds were priced at a coupon and reoffer yield of 9.625% and 10.375%, respectively.
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A wide range of investors from the UK, North America, Europe, Asia, the Middle East, and Nigeria were drawn to the bonds. Investor confidence in Nigeria’s macroeconomic policies and fiscal and monetary management is said to be reflected in this broad interest.
The DMO stated that banks, financial institutions, hedge funds, insurance and pension funds, and investment managers were the sources of demand. Nearly 4.18 times the offered amount, or $9 billion, was the pinnacle of the order book.
The issue, according to Finance Minister Olawale Edun, is an indication of increased trust in President Bola Ahmed Tinubu’s attempts to stabilise the economy. He pointed out that Nigeria’s objective of expanding its international market participation and diversifying its finance sources is in line with the wide investor appetite.
The achievement, according to Central Bank Governor Olayemi Cardoso, is a testament to Nigeria’s strengthened liquidity position and resilience in the global credit market, which has made it possible to support the government’s financing requirements.
The pricing, according to DMO Director-General Patience Oniha, is a “landmark achievement,” highlighting the integrity and openness upheld in Nigeria’s foreign financial dealings.
The primary purpose of the Eurobond proceeds is to support budgetary needs and address the fiscal imbalance until 2024. The London Stock Exchange, FMDQ Securities Exchange Limited, Nigerian Exchange Limited, and the UK Listing Authority will all list the bonds.
Nigeria’s ambition to balance its fiscal framework and position itself for sustainable economic growth is strengthened by this successful issuance.
