Nigeria raises $1.25bn through Eurobonds as debt hits N41.026trn
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Nigeria has officially raised 1.25 Billion dollars through the issuance of seven-year Eurobonds in the International Capital Market (ICM).
By Kadiri Abdulrahman
Nigeria has officially raised 1.25 Billion dollars through the issuance of seven-year Eurobonds in the International Capital Market (ICM).
This is just as the Debt Management Office (DMO) has revealed that Nigeria’s total public debt stock, comprising the federal government, Federal Capital Territory (FCT), states and local governments stood at N39.556 trillion as of December 31, 2021.
In addition, the DMO disclosed that the federal government has so far borrowed about N950 billion from domestic sources to finance the N6.39 trillion deficit in the 2022 Budget.
When the fresh Eurobond issued by the country is added to its debt position as of December 31, 2021, and the N950 billion it had borrowed from the domestic market in 2022, the country’s total public debt currently stands N41.026 trillion.
However, the DG of DMO, Patience Oniha on Thursday said the country’s ability to access the Eurobonds at this time was a confirmation of her established presence with the ICM and engagement with investors on a continuous basis.
She said that the proceeds of the bonds would be used to finance the budget and bridge infrastructural deficits.
“The offer was launched at an initial price thought of 8.75 percent per annum and on the back of strong investor demand, Nigeria was able to reverse the price guidance to 8.5 percent per annum.
“The order book continued to grow, reaching a peak of four billion dollars,” she said.
She said that the order book included many quality investors in the U.S., Europe and Asia.
“With this strong investor interest the price was tightened at 8.37 percent per annum, the order book still remained high at 3.67 billion dollars and still retained quality investors,” she said.
She said that Nigerian investors also participated in the offer with a total subscription of 60 million dollars.
She added that the Eurobonds would also strengthen economic recovery and contribute directly and in full to the level of Nigeria’s External Reserves.
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