Nigeria has achieved a major milestone in its return to the international capital markets, successfully raising $2.35 billion through Eurobonds issuance that drew an unprecedented $13 billion in investor orders — the largest-ever orderbook in the nation’s history.
The Debt Management Office (DMO), in a statement on Wednesday, described the issuance as a landmark success that demonstrates global investor confidence in Nigeria’s economic reforms, fiscal discipline, and long-term growth trajectory.
Despite geopolitical tensions and the recent US threat of military action over claims of Christian genocide, investor enthusiasm remained remarkably strong, resulting in an oversubscription rate of 477 percent.
Details of the Eurobond offering
According to DMO, Nigeria successfully priced $2.35 billion in Eurobonds, split between two tranches: a $1.25 billion long 10-year note maturing in 2036 and a $1.10 billion long 20-year note maturing in 2046.
According to the agency, the 10-year bond and the l20-year notes were priced at yields of 8.6308 per cent and 9.1297 percent, respectively.
“The transaction attracted a peak orderbook of over 13 billion, marking the largest ever orderbook achieved by the Republic,” DMO said.
“This significant milestone underscores the strong support for the transaction across geography and investor class.
“With respect to investor class, demand came from a combination of Fund Managers, Insurance and Pension Funds, Hedge Funds, Banks and other Financial Institutions.”
The agency said Nigeria was pleased to draw broad investor participation from various jurisdictions, including the United Kingdom, North America, Europe, Asia, and the Middle East.
The debt office said the country also received participation from Nigerian investors, describing the interest as “an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management”.
The DMO said the notes will be admitted to the official list of the UK Listing Authority and will be available for trading on the London Stock Exchange’s regulated market, the FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited (NGX).
“The proceeds from this Eurobond issuance will be used to finance the 2025 fiscal deficit and support the government’s other financing needs,” the debt office said.
“Nigeria mandated Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan and Standard Chartered Bank as Joint Bookrunners. FSDH Merchant Bank Limited acted as Financial Adviser on the issuance.”
What President Tinubu said
In his remarks on the transaction, President Bola Ahmed Tinubu expressed delight over 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,” the president was quoted as saying.
According to the statement, Wale Edun, Minister of Finance and Coordinating Minister of the Economy, said the successful market access demonstrates the international community’s sustained confidence in Nigeria’s reform trajectory and its commitment to sustainable and inclusive growth.
On her part, Patience Oniha, director-general of the DMO, noted that Nigeria’s successful return to the eurobond market to raise long-term funding in support of Tinubu’s growth agenda represents a major milestone for the country.
She added that the transaction aligns with the DMO’s objectives of supporting national development and diversifying funding sources.
What you should know
On October 16, Sanyade Okoli, special adviser to the president on finance and the economy, unveiled Nigeria’s plans to issue a $2.3 billion eurobond in its refinancing drive.
On October 22, Nairametrics reported that Nigeria’s long-term Eurobonds faced renewed pressure in October, as global investors showed caution over the country’s fiscal outlook and rising global interest rates.
The longer-dated notes—particularly the 7.625% November 2047 and 8.25% September 2051 issues—saw notable price declines before staging a mild recovery towards month-end.
