Chiamaka Mbonu
The Debt Management Office (DMO) Wednesday said that the federal government has raised $4 billion through Eurobonds.
According to a statement issued by DMO, bids for the Eurobonds were received from investors in Europe and America, as well as Asia, adding that there was also good participation by local investors
DMO said that the size of the order book and the quality of investors demonstrated confidence in the Nigerian economy, stating that the amount was raised after two days of virtual meeting with investors across the globe.
The federal government had listed its $3 billion Eurobond in three tranches for investors, offering up to 8.6 per cent for a 30-year tenor.
It also appointed JP Morgan, Chapel Hill Denham, and six others as transaction advisers for the issuance.
DMO further noted that the order book peaked at $12.2 billion which enabled the federal government to raise $1 billion more than the amount it initially announced.
“This exceptional performance has been described as “one of the biggest financial trades to come out of Africa in 2021” and “an excellent outcome,” it said.
The Eurobonds were issued in three tranches — seven-year $1.25 billion at 6.125 per cent per annum; 12-year $1.5 billion at 7.375 per cent per annum; and 30-year $1.25 billion at 8.25 per cent per annum.
The DMO said 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 $4billion through Eurobonds provides a significant amount of funds to finance projects in the Act, thus contributing to the implementation of the 2021 Appropriation Act,” it added.
