From Victor Osula, Abuja
DG Oniha
The Federal Government has raised $2.2 billion in Eurobonds maturing in 2031 (6.5-year) and 2034 (10-year) in the international capital markets, with $700 million and $1.5 billion raised in the 2031 and 2034 maturities respectively.
Director-General of the Debt Management Office (DMO), Patience Oniha, in a statement, said the Notes were priced at a Coupon and Re-offer Yield of 9.625 percent and 10.375 percent respectively. Although Nigeria priced the Eurobond at $2.2 billion, DMO said the bonds recorded a peak order book of more than $9 billion.
The statement reads: “The Federal Republic of Nigeria (the “Republic”) successfully priced US$2.2 billion in Eurobonds (the “Notes”) maturing in 2031 (6.5-year) and 2034 (10-year) in the international capital markets on 2 December 2024, with US$700 million and US$1.5 billion placed in the 2031 and 2034 maturities, respectively.
“The size of the Orderbook at approximately 4.18x of the offer amount, and the strong and diverse investor base helped to price the new 6.5- yr at 9.625 percent, while new 10-year Notes was priced at 10.375 percent.
“Nigeria is pleased to have attracted a wide range of investors from multiple jurisdictions including the United Kingdom, North America, Europe, Asia, Middle East and participation from Nigerian investors, which it views as an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management.
“The notes would be admitted to the official list of the UK Listing Authority and available to trade on the London Stock Exchange’s regulated market, the FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited.
“The proceeds from this Eurobond issuance will be used to finance the 2024 fiscal deficit and support the government’s budgetary needs.
“Nigeria mandated Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan and Standard Chartered Bank as Joint Bookrunners. FSDH Merchant Bank Limited acted as Financial Adviser on the issuance.
“With the successful pricing of the Notes on intra-day basis, Nigeria has registered a landmark achievement in the international capital market.
“The DMO remains committed to maintaining transparency and open communication with investors and stakeholders and appreciates the continued confidence and support of the international and Nigerian investors who participated in the pricing.”
Following the successful pricing, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said, “Today’s successful issuance signposts increasing confidence in ongoing efforts of the President Bola Tinubu, administration to stabilise the Nigerian economy and position it on the path of sustainable and inclusive growth for the benefit of all Nigerians.
The broad range of investor appetite to invest in our Eurobonds is encouraging as we continue to diversify our funding sources and deepen our engagement with the international capital markets.”
Also, Nigeria’s Central Bank Governor, Olayemi Cardoso, said, “This outcome underscores the growing confidence of investors and the resilience of the Nigeria credit, and evidence of our improved liquidity position and continued access to international markets to support the financing needs of the government.”
