Nigeria has successfully raised $2.2 billion through Eurobond issuance, marking a significant milestone for the nation’s economy under President Bola Ahmed Tinubu’s administration. The Minister of Finance, Wale Edun, hailed the achievement as a testament to the growing confidence in Nigeria’s economic reforms and policies aimed at fostering sustainable and inclusive growth.
According to the Debt Management Office (DMO), the Eurobonds were priced on December 2, 2024, with maturities set for 2031 and 2034. The $2.2 billion raised includes $700 million for the 6.5-year bond, which has a coupon and re-offer yield of 9.625%, and $1.5 billion for the 10-year bond, priced at 10.375%. These competitive rates highlight the resilience of Nigeria’s financial outlook and its strategic engagement with the international capital markets.
The issuance attracted robust interest from investors across the globe, including jurisdictions such as the United Kingdom, North America, Europe, Asia, and the Middle East, as well as participation from Nigerian investors. The DMO revealed that the bonds generated a peak order book exceeding $9 billion, reflecting strong demand from fund managers, insurance and pension funds, hedge funds, banks, and other financial institutions.
The Central Bank Governor, Olayemi Cardoso, described the successful issuance as evidence of Nigeria’s improved liquidity position and its continued access to international markets. “This outcome underscores growing investor confidence and highlights the resilience of Nigeria’s credit position,” Cardoso remarked.
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Director-General of the DMO, Patience Oniha, celebrated the achievement, stating, “With the successful pricing of these notes, Nigeria has achieved a landmark in the international capital market. The strong and diverse investor base helped secure competitive pricing for both the 6.5-year and 10-year notes.” Oniha reiterated the DMO’s commitment to transparency and maintaining open communication with stakeholders while appreciating the confidence shown by investors in Nigeria’s macroeconomic framework.
The Eurobonds will be listed on the London Stock Exchange, FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited. Proceeds from the issuance will be utilized to finance the 2024 fiscal deficit and support the government’s budgetary priorities.
This milestone issuance was facilitated by a team of joint bookrunners, including Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank, with FSDH Merchant Bank Limited serving as the financial adviser.
