Nigeria strikes gold in debt Markets with massive $13bn orderbook

Nigeria has made a resounding return to the international debt markets, successfully raising $2.35 billion through a dual-tranche Eurobond issuance that drew an unprecedented $13 billion in investor orders; the country’s largest orderbook on record.

The landmark transaction, announced by the Debt Management Office (DMO) on Tuesday, comprised a $1.25 billion “long 10-year” bond maturing in 2036 and a $1.10 billion “long 20-year” bond maturing in 2046. The issues were priced at 8.63% and 9.13% yields, respectively.

According to the DMO, the bonds attracted broad participation from institutional investors spanning the United Kingdom, North America, Europe, Asia, the Middle East, and Nigeria, signaling strong global appetite for Nigerian debt despite challenging market conditions.

President Bola Ahmed Tinubu hailed the successful issuance as a “strong vote of confidence” in Nigeria’s ongoing economic reforms.

“We are delighted by the strong investor confidence demonstrated in our country and our reform agenda,” Tinubu said in a statement. “This development reaffirms Nigeria’s position as a recognised and credible participant in the global capital market.”

Finance and Coordinating Minister of the Economy Wale Edun described the robust investor demand as a reflection of international faith in Nigeria’s policy direction.

“This successful market access demonstrates the international community’s continued confidence in Nigeria’s reform trajectory and our commitment to sustainable, inclusive growth,” Edun said.

DMO Director-General Patience Oniha said proceeds from the Eurobond will be used to finance the 2025 fiscal deficit and support other government financing needs under President Tinubu’s development agenda.

“Nigeria’s ability to access the Eurobond market to raise long-term funding needed to support growth is a major achievement,” Oniha noted, emphasizing the DMO’s commitment to diversifying funding sources.

The new notes will be listed on the London Stock Exchange, FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited.

Market Confidence Despite Tight Global Conditions
Analysts say Nigeria’s ability to attract such strong demand, more than five times the amount offered, highlights investor confidence in the country’s fiscal management and reform efforts, even as global borrowing costs remain high.

Nigeria last accessed the Eurobond market in 2022. The latest issuance marks a significant step in the Tinubu administration’s efforts to restore market access, manage public debt, and bolster external reserves.

The government appointed Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank as joint bookrunners for the transaction, while FSDH Merchant Bank Limited served as financial adviser.

With this successful issuance, Nigeria reaffirms its place among the leading frontier-market borrowers able to attract deep and diversified global investor interest, even amid a volatile global financial landscape.