Nigeria secures $2.3bn eurobond amid record investor demand
Nigeria has successfully completed a US$2.35 billion Eurobond issuance in the international capital markets, drawing an unprecedented level of investor interest.
The transaction's orderbook peaked at over US$13 billion, marking the largest ever achieved by Nigeria and underscoring strong global confidence in the nation's economic reform agenda.
The issuance was split into two tranches: Long 10-year Notes: US$1.25 billion placed, priced at a Coupon/Yield of 8.6308% (maturing 2036). And Long 20-year Notes: US$1.10 billion placed, priced at a Coupon/Yield of 9.1297% (maturing 2046).
The substantial demand came from a diverse mix of international investors across the United Kingdom, North America, Europe, Asia, and the Middle East, with significant participation from Nigerian investors. Demand was diversified across investor classes, including Fund Managers, Insurance and Pension Funds, Hedge Funds, Banks, and other Financial Institutions.
A statement from the Debt Management Office (DMO) states that the overwhelming investor response as a clear expression of continued confidence in Nigeria's sound macro-economic policy framework and prudent fiscal and monetary management.
Commenting on the successful market access, His Excellency, President Bola Ahmed Tinubu, GCFR, stated: “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.”
In the same vein, the Minister of Finance and Co-ordinating Minister of the Economy, Mr. Wale Edun, echoed the sentiment, noting that the successful transaction “demonstrates the international community’s continued confidence in Nigeria’s reform trajectory and our commitment to sustainable, inclusive growth.”
Patience Oniha, Director-General of the Debt Management Office (DMO), highlighted the strategic significance, stating, “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 and is consistent with the DMO’s objectives of supporting development and diversifying funding sources.”
The proceeds from the Eurobond issuance are earmarked primarily to finance the 2025 fiscal deficit and support the government's other financing needs.
The Notes will be admitted to the official list of the UK Listing Authority and will be available to trade on the London Stock Exchange’s regulated market, the FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited.
The Federal Republic of Nigeria mandated Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank as Joint Bookrunners. FSDH Merchant Bank Limited served as the Financial Adviser for the issuance.