Nigeria has successfully issued $2.35 billion in Eurobonds, attracting orders worth $13 billion, a 453% oversubscription. The bonds, due in 2036 and 2046, were priced at yields of 8.625% and 9.125%, respectively. This issuance marks a significant milestone for the country, demonstrating strong investor confidence in its economic policies and management.
The deal was part of the government’s plan to raise $2.3 billion, with the aim of financing the 2025 fiscal deficit and supporting other financing needs. The bonds were offered in two tranches: a 10-year bond and a 20-year bond, with $1.25 billion and $1.10 billion allocated to each, respectively. The transaction was facilitated by a consortium of banks, including Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank.
According to the Debt Management Office (DMO), the issuance attracted a wide range of investors from multiple jurisdictions, including the United Kingdom, North America, Europe, Asia, and the Middle East. The DMO noted that the strong demand for the bonds reflects the international community’s confidence in Nigeria’s reform agenda and its commitment to sustainable, inclusive growth.
President Bola Tinubu expressed delight at the strong investor confidence demonstrated in the country, stating that it reaffirms Nigeria’s position as a recognized and credible participant in the global capital market. The Minister of Finance, Mr. Wale Edun, also commented on the successful market access, highlighting the international community’s continued confidence in Nigeria’s reform trajectory.
The proceeds from the Eurobond issuance will be used to finance the 2025 fiscal deficit and support the government’s other financing needs. The bonds will be listed on the London Stock Exchange, the FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited. This development is seen as a major achievement for Nigeria, demonstrating its ability to access the international capital market and raise long-term funding to support its growth agenda.
