Nigeria’s recent issued Eurobond was subscribed in excess of $9 billion at the International bond market. This amount is several times in excess of $1.7 billion that was expected from the bond sales.
This feat achieved by Nigeria signifies a resounding comeback after a two year break from participations at the international bond market.
The Federal Government of Nigeria had earlier in the year announced plans to issue bonds offerings at the international market this year. After a long wait all year, Nigeria issued a dual-tranche Eurobond offering under its Global Medium Term Note Programme. This is mainly to finance the country’s 2024 fiscal deficits.
Details of the Eurobond sales
The federal government of Nigeria sold $700 million worth of the 6.5 year Eurobond which matures in 2031, at an interest rate of 9.625%. And sold $1.5 billion worth of the 10 year tenure Eurobond maturing in 2035 at 10.375% interest.
The Eurobond issuance, which opened and closed on Monday, December 2 2024, was oversubscribed in excess of $9 billion. Unable to allocate the Eurobonds to all subscribers, the federal government eventually took just $2.2 billion across both bonds.
Steadying of the naira
Also the exhilarating performance of Nigeria’s bond at the international market has seen to the strengthening of the currency within the past 24 hours.
Analysts say the naira could see some stability on account of greater investor confidence.
In a statement made available to 9am News Nigeria, Nigeria’s Debt Management Office (DMO) said “The transaction attracted a peak orderbook of more than $9 billion, with demand from a combination of fund managers, insurance, pension and hedge funds as well as banks and other financial institutions”.
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