Nigeria sells $2.35 billion in 10-year, 20-year Eurobonds

The federal government has successfully priced $2.35 billion in Eurobonds maturing in 2036 (10-year) and 2046 (20-year) in the international capital market.
According to a statement issued by the Debt Management Office, $1.25 billion and $1.10 billion of the Eurobonds are placed in the 2036 and 2046 maturities, respectively.
The office stated that the long 10-year bond and the long 20-year notes were priced at coupons/yields of 8.6308% and 9.1297%, respectively.
It stated that Nigeria was pleased to have attracted a wide range of investors from multiple jurisdictions, including the United Kingdom, North America, Europe, Asia, the 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, 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 expressed delight in the strong investor confidence demonstrated in the country and the federal government’s reform agenda.
According to Mr Tinubu, this development reaffirms Nigeria’s position as a recognised and credible participant in the global capital market.
Finance minister Wale Edun said that the successful market access demonstrated the international community’s continued confidence in Nigeria’s reform trajectory.
Mr Edun said that it also demonstrated confidence in the federal government’s commitment to sustainable and inclusive growth.
DMO director-general Patience Oniha lauded the country’s ability to access the Eurobond market to raise long-term funding needed to support the federal government’s growth agenda.
“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 stated that the notes would be included on the official list of the UK Listing Authority and would be available for trading 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 stated that Nigeria mandated Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank as joint bookrunners, while FSDH Merchant Bank Limited served as the Financial Adviser on the issuance.
(NAN)
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