Nigeria sold $2.35 billion in bonds due in 2046, as the issuance attracted orders worth $13 billion, representing an oversubscription by 453 per cent or $10.65 billion.
The deal was priced at yields of 8.625% and 9.125% respectively, down from initial price discussions, and compares with the interest rate of 10.375% that Nigeria paid on the $1.5 billion of 10-year Eurobonds it issued in December.
The offering of 10- and 20-year bonds comes after an earlier report that the country would look to raise $2.25 billion from the sale.
Last month, the government approved plans to raise as much as $2.3 billion, along with a proposal to refinance $1.1 billion of dollar debt that matures later this month.
According to a statement from the Debt Management Office (DMO), the Federal Republic of Nigeria successfully priced $2.35 billion Eurobonds maturing in 2036 (Long 10-year) and 2046 (Long 20-year) in the international capital markets, with US$1.25 billion and US$1.10 billion placed in the 2036 and 2046 maturities, respectively.
The Long 10-year bond and the Long 20-year Notes were priced at Coupons / Yields of 8.625 per cent and 9.125 per cent, respectively, the statement added.
“Nigeria is pleased to have attracted a wide range of investors from multiple jurisdictions, including the United Kingdom, North America, Europe, Asia, Middle East, and participation from Nigerian investors, which it views as an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management.
“The transaction attracted a peak orderbook of over US$13 billion, marking the largest ever orderbook achieved by the Republic. 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 statement added.
Search on Ojoojoo.com Nigeria's First Search Engine ...For More About This Post: Brazil Central Bank Maintains Interest Rate At 15%
In his remarks on the transaction, President Bola Tinubu stated that: “We are delighted by 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.”.
According to the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, “This successful market access demonstrates the international community’s continued confidence in Nigeria’s reform trajectory and our commitment to sustainable, inclusive growth.”
In her remarks, the Director-General of the DMO, Patience Oniha, stated: “Nigeria’s ability to access the Eurobond Market to raise long-term funding needed to support the growth agenda of President Bola Ahmed Tinubu is a major achievement for Nigeria and is consistent with the DMO’s objectives of supporting development and diversifying funding sources.”
The Notes would be admitted to the official list of the UK Listing Authority and available to trade on the London Stock Exchange’s regulated market, the FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited.
The proceeds from this Eurobond issuance will be used to finance the 2025 fiscal deficit and support the government’s other financing needs.
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.
The post Nigeria Sells $2.35b Eurobonds As Investors Oversubscribe appeared first on Channels Television.