Nigeria raises $2.2 billion from latest Eurobond auction

Nigeria has raised $2.2 billion through its latest Eurobond auction, marking a pivotal moment in the country’s ongoing efforts to address its growing fiscal deficit.
This auction, which saw the issuance of two bonds with varying tenors, follows the government’s return to the international capital markets for the first time since March 2022.
The funds raised will primarily be used to support Nigeria’s 2024 budget, which is under strain due to persistent revenue shortfalls and mounting public spending.
According to sources, who spoke to Nairametrics on Monday, while Nigeria recorded a total subscription of over $9 billion, only $2.2 billion was allotted.
The allotments are $700 million for the 6.5-year bond priced at 9.625% and a larger $1.5 billion for the 10-year bond priced at 10.375%.
The bonds were issued under the Regulation S/144A structure, making them available to both U.S. and international investors.
This oversubscription reflects continued investor interest in Nigerian debt, though the yields have raised concerns about the country’s financial stability.
In a statement on Monday, the Debt Management Office (DMO) announced the successful issuance of Eurobonds.
The DMO noted that the bonds attracted a wide range of investors from multiple jurisdictions including the United Kingdom, North America, Europe, Asia, Middle East and participation from Nigerian investors.
In the statement, Nigeria’s Finance Minister, Mr. Olawale Edun, emphasized the confidence in President Bola Tinubu’s administration’s efforts to stabilize the Nigerian economy and promote sustainable growth. He noted the strong investor interest in the Eurobonds as a sign of increasing confidence in Nigeria’s economic direction.
Also, Central Bank of Nigeria’s Governor, Olayemi Cardoso, highlighted the positive outcome as a reflection of investor confidence and Nigeria’s improved liquidity and market access.
In the statement, Nigeria’s Finance Minister, Mr. Olawale Edun, emphasized the confidence in President Bola Tinubu’s administration’s efforts to stabilize the Nigerian economy and promote sustainable growth. He noted the strong investor interest in the Eurobonds as a sign of increasing confidence in Nigeria’s economic direction.

source: nairametrics

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