The Federal Republic of Nigeria successfully launched a $2.2 billion Eurobond in the international market, drawing an impressive $9 billion in investor interest.
The bonds, structured into two tranches, include a 6.5-year bond maturing in 2031 and a 10-year bond maturing in 2034.
The Debt Management Office (DMO) revealed that $700 million was allocated to the 2031 tranche, while $1.5 billion was assigned to the 2034 tranche. The bonds were priced at a coupon and re-offer yield of 9.625% for the 6.5-year tranche and 10.375% for the 10-year tranche.
The bonds attracted a diverse pool of investors from regions including the United Kingdom, North America, Europe, Asia, the Middle East, and Nigeria. This widespread interest is seen as a testament to investor confidence in Nigeria’s macroeconomic policies and fiscal and monetary management.
According to the DMO, demand came from a mix of fund managers, insurance and pension funds, hedge funds, banks, and financial institutions. The order book peaked at $9 billion, nearly 4.18 times the offered amount.
Finance Minister Olawale Edun highlighted the issuance as a sign of growing confidence in President Bola Ahmed Tinubu’s economic stabilization efforts. He noted that the broad investor appetite aligns with Nigeria’s goal of diversifying funding sources and strengthening international market engagement.
Central Bank Governor Olayemi Cardoso emphasized that the success reflects Nigeria’s improved liquidity position and resilience in the international credit market, enabling support for the government’s financing needs.
DMO Director-General Patience Oniha described the pricing as a “landmark achievement,” underscoring the transparency and credibility maintained in Nigeria’s international financial transactions.
The Eurobond proceeds will primarily address the 2024 fiscal deficit and support budgetary requirements. The bonds will be listed on the UK Listing Authority, the London Stock Exchange, FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited.
This successful issuance reinforces Nigeria’s strategy to balance its fiscal framework while positioning itself for sustainable economic growth.
