The Federal Republic of Nigeria has successfully priced $2.2 billion in Eurobonds across two tranches, maturing in 2031 and 2034, with respective values of $700 million and $1.5 billion. The bonds, issued at coupon rates of 9.625% for the 6.5-year maturity and 10.375% for the 10-year maturity, mark another step in Nigeria’s engagement with international capital markets.
The issuance garnered overwhelming investor interest, with peak order books exceeding $9 billion, more than four times the offer size. The bonds attracted a diverse range of investors from regions including the United Kingdom, North America, Europe, Asia, the Middle East, and Nigeria. Investor classes included fund managers, insurance and pension funds, hedge funds, banks, and other financial institutions.
Finance Minister and Coordinating Minister of the Economy, Mr. Olawale Edun, expressed satisfaction with the outcome, stating, “Today’s successful issuance signposts increasing confidence in the ongoing efforts of the President Bola Ahmed Tinubu administration to stabilize the Nigerian economy and position it on the path of sustainable and inclusive growth for the benefit of all Nigerians.”
Central Bank Governor Olayemi Cardoso also lauded the transaction, noting, “This outcome underscores the growing confidence of investors and the resilience of the Nigerian credit. It is evidence of our improved liquidity position and continued access to international markets to support the government’s financing needs.”
Director-General of the Debt Management Office (DMO), Patience Oniha, described the issuance as a landmark achievement. She highlighted that the bonds’ strong investor base enabled competitive pricing, with the 6.5-year bond set at 9.625% and the 10-year bond at 10.375%. Oniha reaffirmed the DMO’s commitment to maintaining transparency and open communication with stakeholders, emphasizing the importance of continued investor confidence.
The Eurobonds will be listed on the UK Listing Authority’s official list and traded on the London Stock Exchange, FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited. Proceeds from the issuance will finance Nigeria’s 2024 fiscal deficit and support the federal government’s budgetary needs.
The issuance was managed by a consortium of top financial institutions, with Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank acting as joint bookrunners. FSDH Merchant Bank Limited served as the financial adviser.
This successful Eurobond issuance underscores Nigeria’s ongoing efforts to diversify funding sources and deepen its relationship with international capital markets, as the government pursues fiscal stability and economic growth.
