Nigeria has raised $2.2 billion in Eurobonds to address its 2024 fiscal deficit, signaling renewed investor confidence in the nation’s economic policies. The funds will finance budgetary needs and support government initiatives aimed at driving sustainable growth.
The bonds, maturing in 2031 and 2034, were issued at $700 million and $1.5 billion, respectively. Investors responded strongly, with a peak order book exceeding $9 billion, according to the Debt Management Office (DMO). The 6.5-year bond was priced at 9.625%, while the 10-year bond carried a yield of 10.375%.
“This successful issuance highlights the international community’s confidence in our macroeconomic policies,” said Finance Minister Olawale Edun. He credited the government’s reforms under President Bola Ahmed Tinubu for attracting a diverse range of investors from Europe, Asia, North America, and the Middle East. Nigerian investors also participated, reflecting local confidence in the deal.
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DMO Director-General Patience Oniha noted the high demand, with investor orders surpassing the offer size by over four times. “This landmark achievement reinforces Nigeria’s strong position in the international capital market,” she said.
Proceeds from the bonds will be used to fund the government’s fiscal programs, including infrastructure development and critical public services. The transaction was managed by Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank, with FSDH Merchant Bank Limited acting as financial adviser.
Central Bank Governor Olayemi Cardoso emphasized the bonds’ significance, calling them a testament to Nigeria’s improving liquidity and credit resilience. “This outcome underscores our sustained access to global markets, vital for meeting government financing needs,” he said.
The Eurobonds will be traded on the London Stock Exchange, FMDQ Securities Exchange, and Nigerian Exchange, offering investors seamless access to a vibrant and expanding market.
