The Nigerian government successfully raised $2.2 billion from its Eurobond issuance, marking a major return to the international capital markets. This achievement was reported recently, highlighting the oversubscription of the bond offer, which reached an impressive $9 billion.
The issuance was part of Nigeria's Global Medium Term Note Programme and aimed to address the country's fiscal deficit.
The Eurobond was issued in two tranches: a 6.5-year bond maturing in 2031 with a coupon rate of 9.625 percent, and a 10-year bond maturing in 2034 with a coupon rate of 10.375 percent.
Initially, the government had planned to issue $1.7 billion worth of bonds, but due to high demand, the final amount raised was increased to $2.2 billion. This oversubscription is seen as a strong indicator of renewed investor confidence in Nigeria's economic prospects.
Finance Minister Wale Edun emphasized that the funds would be used to finance the 2024 budget deficit and support economic reforms. The successful issuance attracted a diverse range of investors from various regions, including the United Kingdom, North America, Europe, Asia, and the Middle East, as well as participation from Nigerian investors.
The transaction was managed by a consortium of international and domestic financial institutions, including Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., and Standard Chartered Plc, with Chapel Hill Denham Advisory Limited acting as the Nigerian bookrunner.
This Eurobond issuance represents a pivotal moment for Nigeria as it seeks to diversify its funding sources and strengthen its financial stability amidst ongoing economic challenges.
Yorumlar