The Debt Management Office (DMO) has disclosed that Nigeria raised $1.25 billion through the issuance of a seven-year Eurobonds in the International Capital Market (ICM).
In a statement hosted on the Office’s website, the Director General, Patience Oniha, explained that with the issuance of the bonds in the ICM, Nigeria had become the first African country to access the ICM in 2022.
She stated that the country’s ability to access the Eurobonds at this time was a confirmation of its presence with the ICM and engagement with investors on a continuous basis.
Oniha said that the bonds’ proceeds would be used to finance the budget and bridge infrastructure deficits.
The DMO stated: “The Offer was launched at an Initial Price Thoughts of 8.75% per annum and on the back of strong investor demand, Nigeria was able to revise the price guidance to 8.5% per annum.
“The Order Book continued to grow, reaching a peak of USD 4 billion. The Order Book included many quality investors in the United States, Europe and Asia. With this strong investor interest, the price was tightened to 8.375% per annum, the Order Book still remained high at USD 3.676 billion and retained the quality investors. Nigerian investors also participated in the Offer with a total subscription of USD 60 million.
“The proceeds of the Eurobond will be used to finance critical capital projects in the Budget to bridge the deficit in infrastructure and strengthen Nigeria’s economic recovery. Equally important, it would contribute directly and in full to the level of Nigeria’s External Reserves”, it added.
The DMO further projected that the Eurobonds would also strengthen economic recovery and boosts Nigeria’s external reserves.
