Debt Management Office (DMO) has raised $4 billion for the Federal Government through Eurobonds to part-finance the deficit aspect of its 2021 budget. According to a statement from DMO, the development followed two days of virtual meetings with investors across the globe.
The Order Book peaked at USD12.2 billion, which enabled Federal Government to raise $ billion more than the $3 billion 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”. Bids for the Eurobonds were received from investors in Europe and America, as well as Asia.
“There was also good participation by local investors.
“The size of the Order Book and the quality of investors demonstrates confidence in Nigeria.”
The statement added that the bonds were issued in three tranches of:
7 years – USD1.25 billion at 6.125% p.a
12 years – USD1.5 billion at 7.375% p.a
30 years – USD1.25 billion at 8.25% p.a
“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 USD4 billion through Eurobonds provides a significant amount of funds to finance projects in the Act, thus contributing to the implementation of the 2021 Appropriation Act.”
