Budget 2021: Nigeria raises $4bn from latest Eurobonds issue

MEDIATRACNET

The Debt Management Office (DMO) has announced the successful issue Eurobonds, with about $4billion raised from the exercise.
For over two days of a series of virtual meetings with global investors, the debt management agency said it succeeded in raising the $4 billion, which has been described as “one of the biggest financial trades to come out of Africa in 2021”
The DMO said the exceptional performance was seen by many as “an excellent outcome.”
With the Order Book peaking at about $12.2 billion, the DMO said it enabled the Federal Government to raise $1 billion more than the initially announced $3 billion.
“Bids for the Eurobonds were received from investors in Europe and America, as well as Asia. There was also good participation by local investors. The size of the Order Book and the quality of investors demonstrates confidence in Nigeria,” the DMO said.
The Eurobonds were issued in three tranches, in the categories of 7 years – $1.25 billion at 6.125% per annum; 12 years -$1.5 billion at 7.375% per annum, and 30 years – $1.25 billion at 8.25% per annum.
The DMO said the long tenors of the Eurobonds and the spread across different maturities are well aligned with Nigeria’s Debt Management Strategy, 2020 – 2023.
It explained that the Eurobonds were issued as part of the New External Borrowing plan approved in the 2021 Appropriation Act.
The raising of the $4 billion through Eurobonds, the DMO added, would provide a significant amount of funds to finance projects in the Act, thus contributing to the implementation of the 2021 Appropriation Act.

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