November 06, (THEWILL) — The Federal Government has concluded a $2.35 billion Eurobond issuance in the international capital markets, despite recent remarks by United States President, Donald Trump, threatening sanctions and military action over alleged religious violence in the country.
The Debt Management Office (DMO) confirmed the transaction on Wednesday, October 6, stating that the issuance was split into two tranches of $1.25 billion in a 10-year bond maturing in 2036 and $1.10 billion in a 20-year bond maturing in 2046. The bonds were priced at yields of 8.6308 percent and 9.1297 percent, respectively.
According to the DMO, the proceeds will be used to finance the 2025 fiscal deficit and support broader government financing needs. The agency noted that investor interest remained strong, with the orderbook peaking at over $13 billion.
“Nigeria is pleased to have attracted a wide range of investors from multiple jurisdictions, including the United Kingdom, North America, Europe, Asia, the Middle East and participation from Nigerian investors”, the DMO stated.
“This is viewed as an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management.”
President Bola Tinubu welcomed the outcome, describing it as a reflection of investor confidence in Nigeria’s reform agenda.
“We are delighted by the strong investor confidence demonstrated in our country and our reform agenda. This development reaffirms Nigeria’s position as a recognised and credible participant in the global capital market.
“This successful market access demonstrates the international community’s continued confidence in Nigeria’s reform trajectory and our commitment to sustainable, inclusive growth”, he stated.
The Director-General of the DMO, Patience Oniha, said that the issuance aligned with the agency’s objective to support development and diversify funding sources.
“Nigeria’s ability to access the Eurobond Market to raise long-term funding needed to support the growth agenda of President Bola Ahmed Tinubu is a major achievement for Nigeria”, she said.
The Notes will be listed on the London Stock Exchange’s (LSE) regulated market, the FMDQ Securities Exchange Limited and the Nigerian Exchange Limited (NGX). The transaction was managed by Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan and Standard Chartered Bank as Joint Bookrunners, with FSDH Merchant Bank Limited acting as Financial Adviser.
The Nigeria’s dual-tranche listing for ten-year and twenty-year bonds, which was oversubscribed and priced at 8.625% and 9.125%, respectively, is the largest Eurobond in the country’s economic history.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
