Nigeria successfully issued US $2.2 billion in Eurobonds, garnering a remarkable US $9.0 billion in orders, indicative of strong global investor confidence. The 6.5-year and 10-year bonds were priced competitively at 9.625% and 10.375%, respectively. Proceeds will fund the 2024 fiscal deficit, bolstering the nation’s economic advancement under the current administration.
The Nigerian government recently reported the successful pricing of US $2.2 billion in Eurobonds with maturities of 6.5 years and 10 years. This endeavor attracted orders exceeding US $9.0 billion, illustrating the strong backing for Nigeria in international capital markets. A diverse investor base, including renowned fund managers, pension and insurance funds, banks, and hedge funds from the UK, North America, Europe, Asia, and the Middle East, participated significantly.
Mr. Olawale Edun, the Honourable Minister of Finance, expressed that this issuance reflects growing investor confidence in the government’s economic policies, aiming for sustainable growth across Nigeria. Olayemi Cardoso, the Governor of the Central Bank of Nigeria, emphasized the increasing trust investors have in Nigeria’s credit worthiness and liquidity.
Patience Oniha, Director-General of the Debt Management Office (DMO), noted the issuance’s success in attracting an orderbook 4.18 times the offer amount, marking it a significant achievement in the international market. The Eurobonds received interest from several financial institutions, leading to competitive pricing of 9.625% and 10.375% for the respective maturities. Proceeds from these bonds will address the fiscal deficit for 2024 and support the government’s budgetary requirements.
The notes will be listed on the official registry of the UK Listing Authority and traded on both the London Stock Exchange’s regulated market and other domestic exchanges, ensuring transparency to stakeholders and investors.
The issuance of Eurobonds by the Nigerian government is a strategic financial maneuver designed to attract global investment and diversify funding avenues. Eurobonds typically appeal to a variety of investors, seeking stable returns from developing markets, thereby bolstering Nigeria’s economic resilience. This particular issuance showcases Nigeria’s commitment to fiscal responsibility and fostering international investor relations, underpinning the administration’s broader economic stabilization efforts.
In conclusion, Nigeria’s recent US $2.2 billion Eurobond issuance signifies a robust endorsement from the international investment community, reflecting their trust in the country’s economic direction and management. With a substantial orderbook and diverse investor participation, this initiative enhances Nigeria’s reputation in global finance, while the funds generated will be crucial for managing the national fiscal deficit and facilitating continued economic development for its populace.
Original Source: www.dmo.gov.ng
