The Debt Management Office (DMO) has said that the Federal Government raised $4 billion through its latest eurobonds issuance.
According to the DMO, the amount was realised after two days of intensive virtual meeting with investors across the world.
This was as the government listed its $3 billion eurobond in three tranches for investors, offering up to 8.6 percent for a 30-year tenor in the issue which had JP Morgan, Chapel Hill Denham and six others as transaction advisers.
A statement issued by DMO on Tuesday night, explained that the order book peaked at $12.2 billion, which enabled the Federal Government of Nigeria (FGN) to raise $1 billion more than the $3 billion it initially announced.
The Office stated “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.”
According to the DMO, the size of the order book and the quality of investors demonstrated confidence in the Nigerian economy.
The Office said the eurobonds were issued in three tranches — seven-year $1.25 billion at 6.125 percent per annum; 12-year $1.5 billion at 7.375 percent per annum; and 30-year $1.25 billion at 8.25 percent per annum, stressing that the long tenors of the eurobonds and the spread across different maturities were 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 $4billion through Eurobonds provides a significant amount of funds to finance projects in the Act, thus contributing to the implementation of the 2021 Appropriation Act,” it added. The eurobond is part of the Federal Government’s borrowing plans to finance part of the 2021 budget deficit.