Nigeria has successfully raised $2.2 billion through the issuance of Eurobonds maturing in 2031 and 2034, according to a statement from the Debt Management Office, DMO, in Abuja.

This marks a significant step for the country as it returns to international capital markets after a two-year hiatus.

The issuance consists of $700 million in Eurobonds maturing in 2031 and $1.5 billion maturing in 2034. The bonds were priced with yields of 9.625% for the 6.5-year bond and 10.375% for the 10-year bond.

The DMO reported strong interest from a diverse group of investors, including those from the United Kingdom, North America, Europe, Asia, and the Middle East, alongside participation from local Nigerian investors.

The transaction attracted a peak order book exceeding $9 billion, indicating robust support across various investor classes, such as fund managers, pension funds, hedge funds, and banks. Finance Minister Wale Edun noted that this successful issuance reflects growing confidence in the government’s efforts to stabilize the economy and diversify funding sources.

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Central Bank Governor Yemi Cardoso emphasized that this outcome showcases improved liquidity and continued access to international markets, which are essential for financing government needs.

Patience Oniha, Director-General of the DMO, described this pricing as a landmark achievement for Nigeria in international capital markets. The proceeds from this Eurobond issuance will primarily be used to finance Nigeria’s 2024 fiscal deficit and support budgetary requirements.

The notes will be listed on the official list of the UK Listing Authority and made available for trading on both the London Stock Exchange and local exchanges in Nigeria. The DMO has mandated several financial institutions, including Citigroup and Goldman Sachs, as joint bookrunners for this issuance.

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