The Debt Management Office has revealed that Nigeria became the first African country to raise USD1.25 billion through the issuance of Eurobonds in the International Capital Market.
This was disclosed in a statement by the DMO on Thursday evening, stating Nigerian investors contributed $60 million to the subscription.
It stated that the Eurobond raised will be used to boost Nigeria’s external reserves, finance critical capital projects in the budget
What the DMO is saying
It revealed that the Eurobond is priced at a 7-year rate in the International Capital Market, citing that this development makes Nigeria the first African country to access the ICM in 2022.
- “Nigeria’s ability to access the ICM at this time is a confirmation of her established presence in the ICM and engagement with investors on a continuous basis.
- “The offer was launched at an initial price thoughts of 8.75% per annum and on the back of strong investor demand, Nigeria was able to revise the price guidance to 8.5% per annum. The order book continued to grow, reaching a peak of USD 4 billion,” it said.
The DMO added that order look included many quality investors in the United States, Europe and Asia, with this strong investor interest, the price was tightened to 8.375% per annum, and remained high at $ 2.676 billion, retaining its quality investors as Nigerian investors also participated in the offer with a total subscription of $60 million.
- “The proceeds of the Eurobond will be used to finance critical capital projects in the budget to bridge the deficit in infrastructure and strengthen Nigeria’s economic recovery, equally important, it would contribute directly and in full to the level of Nigeria’s external reserves,” it added.
In case you missed it
- Nairametrics reported earlier that Debt Management Office (DMO) has revealed that Nigeria’s total public debt has risen to N39.55 trillion as at December 2021.
- This represents a N1.55 trillion or 4.1% increase in 3 months when compared to the N38 trillion total public debt that was recorded as at September 2021.
