BOND
Picnews
Nigeria’s $2.35 billion Eurobond issuance has been massively oversubscribed, attracting orders worth over $13 billion, marking the country’s largest-ever orderbook. This significant milestone underscores strong investor confidence in Nigeria’s economic reforms and macroeconomic policy framework. The Eurobond issuance, which comprised $1.25 billion in 10-year bonds and $1.10 billion in 20-year bonds, was priced at yields of 8.6308% and 9.1297%, respectively.
The transaction saw participation from a wide range of investors, including fund managers, insurance and pension funds, hedge funds, banks, and other financial institutions across multiple regions, including the UK, North America, Europe, Asia, and the Middle East. The strong demand for the Eurobond reflects confidence in Nigeria’s economic reforms and macroeconomic management, despite recent geopolitical tensions.
The net proceeds from the Eurobond issuance will be used to finance the 2025 fiscal deficit and support the government’s other financing needs. This successful issuance demonstrates Nigeria’s ability to access international capital markets and attract significant investor interest. The country’s Eurobond market has seen significant growth in recent years, with investors drawn to the higher yields offered by Nigerian bonds compared to other emerging markets.
The oversubscription of the Eurobond issuance is a testament to Nigeria’s potential for economic growth and its commitment to fiscal discipline. With a growing economy and a large consumer market, Nigeria remains an attractive destination for investors looking to tap into the country’s vast potential. The successful issuance of the Eurobond is expected to boost investor confidence and potentially lead to further investments in the country.
