Nigeria has raised a $1.25 billion Eurobond in the International Capital Market.
A statement by the Debt Management (DMO) on Thursday indicated that the Eurobond had a seven-year tenor and singled out Nigeria as the first African nation to access funds from the International Capital Market, in 2022.
The statement read: “Nigeria has today priced a USD 1.250 billion 7-year Eurobond in the International Capital Market (ICM). This development makes Nigeria the first African country to access the ICM in 2022.
“Nigeria’s ability to access the ICM at this time is a confirmation of her established presence in the ICM and engagement with investors on a continuous basis. The Offer was launched at an Initial Price.
“Thoughts of 8.75 per cent per annum and on the back of strong investor demand, Nigeria was able to revise the price guidance to 8.5 per cent per annum.
“The Order Book continued to grow, reaching a peak of USD 4 billion. The Order Book included many quality investors in the United States, Europe and Asia.
“With this strong investor interest, the price was tightened to 8.375 per cent per annum, the Order Book still remained high at USD 3.676 billion and retained the quality investors.
“Nigerian investors also participated in the Offer with a total subscription of USD 60 million. The proceeds of the Eurobond will be used to finance critical capital projects in the Budget to bridge the deficit in infrastructure and strengthen Nigeria’s economic recovery.
“Equally important, it would contribute directly and in full to the level of Nigeria’s External Reserves.”