Nigeria’s Eurobonds Oversubscribed By $1bn, Raises $4bn

The Federal government has raised $1 billion more through its Eurobond, than the $3 billion it initially announced

Nigeria has raised the sum of $4 billion through Eurobonds, with investors demanding more than four times the amount on offer.

According to the statement issued by the Debt Management Office (DMO), the Order Book peaked at $12.2 billion After an intensive two days of virtual meetings with investors across the globe,

“This exceptional performance has been described as ‘one of the biggest financial trades to come out of Africa in 2021 and an excellent outcome”.

“The size of the Order Book and the quality of investors demonstrate confidence in Nigeria”, the DMO said.

Nigeria opened its order book for the bond offering on Tuesday, aiming to issue the bond next week, according to a notice to investors.

The country issued the debt in tranches of three tenors.

It raised $1.25 billion for seven years at a yield of 6.125% and sold a 12-year bond at 7.375% to fetch $1.5 billion.

A 30-year tranche of $1.25 billion was sold at 8.25%.

Since the Eurobonds were issued as part of the New External Borrowing in the 2021 Appropriation Act, the raising of $4 billion through Eurobonds provides a significant amount of funds to finance projects in the Act, thus contributing to the implementation of the 2021 Application Act.

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