WED 22 SEPT, 2021-theGBJournal- Nigeria has successfully raised $4 billion through its Eurobonds issuance, coming after a two-day intense virtual meeting with investors across the globe.
The Order Book peaked at $12.2 billion, ‘’which enabled the Federal Government to raise $1 billion more than the $3 billion it initially announced,’’ according the Debt Management Office (DMO).
The exceptional performance has been described as one of the biggest financial trades to come out of Africa in 2021.
The DMO said bids for the Eurobonds were received from investor from Europe and America, as well as Asia and there was also good participation from local investors.
‘’The size of the Order Book and quality of investors demonstrates confidence in Nigeria,’’ the DMO said Tuesday.
The Eurobonds were issued in three tranches- 7 years $1.25 billion at 6.125% p.a, 12 years $1.5 billion at 7.375% p.a, and 30 years $1.25 billion at 8.25% p.a.
According to the DMO, the long tenor of the Eurobond and the spread across different maturities are well aligned with Nigeria’s Debt Management strategies of 2020-2023.
‘’Since the Eurobonds were issued as part of the new external borrowing in the 2021 Appropriation Act, the raising of the US$4 billion through Eurobonds provides a significant amount of funds to finance projects in the Act, thus contributing to the implementation of the Appropriation Act,’’ says the DMO.
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