Govt Raises $4b Eurobonds To Finance 2021 Budget

After two days of virtual meetings with investors, Nigeria has raised $4 billion through Eurobonds.

A statement by the Debt Management Office (DMO) said: “The Order Book peaked at USD12.2 billion, which enabled the Federal Government of Nigeria to raise USD1 billion more than the USD3 billion it initially announced.”

DMO described the performance as “one of the biggest financial trades to come out of Africa in 2021” and “an excellent outcome”.

“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 demonstrate confidence in Nigeria,” the DMO said.

The Eurobonds were issued in three tranches of seven years – USD1.25 billion at 6.125 per cent per annum; 12 years – USD1.5 billion at 7.375 per cent per annum and 30 years – USD1.25 billion at 8.25 per cent per annum.

The DMO added: “The long tenors of the Eurobonds and the spread across different maturities are well aligned with Nigeria’s Debt Management Strategy, 2020 – 2023.

“Since the Eurobonds were issued as part of the New External Borrowing in the 2021 Appropriation Act, the raising of USD4 billion through Eurobonds provides a significant amount of funds to finance projects in the Act, thus contributing to the implementation of the 2021 Appropriation Act.”