Nigeria’s Eurobond reached a major milestone on Monday, raising $2.2 billion after the country made its return to the international market. This achievement follows a remarkable $9 billion oversubscription of the Eurobond.
The bond issuance, which began on Monday under the Global Medium Term Note Programme, originally targeted $1.7 billion, but it was oversubscribed. The Nigerian government plans to use the proceeds from the Eurobond to address the country’s fiscal deficit.
The Nigerian government sold $700 million worth of a 6.5-year Eurobond maturing in 2031 at a coupon rate of 9.625%, and $1.5 billion worth of a 10-year bond at a coupon rate of 10.375%.
Earlier, the government had announced plans to issue $500 million worth of bonds. The two tranches of the Eurobond consist of a 6.5-year bond with a coupon rate of 10.125% and a 10-year bond with a coupon rate of 10.625%.
This Eurobond issuance marks another significant step in Nigeria’s efforts to diversify its funding sources and attract foreign investment.
Earlier, Wale Edun, the Minister of Finance, had announced plans by the Nigerian government to issue a $1.7 billion Eurobond as part of an external borrowing plan aimed at strengthening the country’s finances and supporting economic reforms.
He said, “The first objective is to complete the federal government’s external borrowing programme with the approval of the $2.2 billion financing package, which will include access to the international capital market through a combination of Eurobonds and Sukuk bonds—approximately $1.7 billion from the Eurobond offer and $500 million from Sukuk financing.”
