Nigeria has secured $2.2 billion through Eurobond issuance with overwhelming investor interest exceeding $9.0 billion. Local and international investors showcased confidence in Nigeria’s economic policies. Proceeds will finance the 2024 fiscal deficit. The bonds will be listed on major exchanges, ensuring continued engagement with global markets.
Nigeria has successfully issued $2.2 billion in Eurobonds with maturities of 6.5 and 10 years, achieving significant investor interest with a peak order book exceeding $9.0 billion. This issuance signifies confidence in Nigeria’s economic framework and fiscal management, drawing a diverse range of investors from different regions including the UK, North America, Europe, Asia, and the Middle East, as well as participation from local investors. The offerings were mandated to a consortium of reputable financial institutions, illustrating Nigeria’s commitment to accessing international capital markets while ensuring financial transparency.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, noted that this successful issuance reflects the government’s efforts to stabilize the economy under President Bola Ahmed Tinubu’s administration, emphasizing the broad investor appetite. Central Bank Governor Olayemi Cardoso remarked that this development showcases the resilience and improving liquidity of Nigeria’s credit position. Likewise, the Director-General of the Debt Management Office (DMO), Patience Oniha, highlighted the landmark achievement in the international capital market and the diversity of the investor base that contributed to the successful pricing of the bonds.
The proceeds from this offering are earmarked to finance Nigeria’s 2024 fiscal deficit and support government budgetary needs, further enhancing fiscal responsibility and accountability. Following the issuance, the bonds are set to be listed on the London Stock Exchange and other financial markets, reaffirming Nigeria’s commitment to maintaining investor trust and engagement.
This press release announces Nigeria’s recent Eurobond issuance, a financial instrument used by governments to raise capital from international markets. Eurobonds allow countries to lower their domestic debt burden and meet fiscal needs, especially during budget deficits. The successful funding reflects investor confidence in Nigeria’s economic policies, management, and the supportive measures being implemented to stabilize its economy under the current administration. The DMO’s involvement underscores its role in facilitating this process.
The issuance of $2.2 billion in Eurobonds by Nigeria, met with a robust order book, highlights the country’s increasing attractiveness to international investors. It signals confidence in its macroeconomic policies and presents a clear plan to address fiscal deficits while broadening its funding sources. With strong backing and successful pricing reflecting diverse investor participation, Nigeria is well-positioned for future engagements in global financial markets.
Original Source: www.dmo.gov.ng
