Nigeria has priced $2.2 billion in Eurobonds with strong demand exceeding $9 billion, highlighting significant investor confidence in the country’s economic strategy. The issuance will fund the 2024 fiscal deficit, showcasing Nigeria’s engagement in international capital markets and fiscal management effectiveness. Prominent financial institutions facilitated this transaction, further illustrating Nigeria’s commitment to transparency and sustainability in its economic policies.
Nigeria has successfully issued Eurobonds valued at $2.2 billion with tenors of 6.5 years and 10 years, achieving impressive demand exceeding $9 billion. This considerable interest illustrates the confidence global investors have in Nigeria’s economic stability and management strategies. A diverse assortment of investors, including fund managers, insurance companies, hedge funds, and banks, participated in this issuance, highlighting the international market’s support for Nigeria’s fiscal policies.
Following the pricing, Mr. Olawale Edun, the Honourable Minister of Finance, remarked, “Today’s successful issuance signposts increasing confidence in ongoing efforts of the President Bola Ahmed Tinubu, GCFR, administration to stabilize the Nigerian economy and position it on the path of sustainable and inclusive growth for the benefit of all Nigerians.”
Central Bank Governor Olayemi Cardoso noted, “This outcome underscores the growing confidence of investors and the resilience of the Nigeria credit.” Meanwhile, DMO Director-General Patience Oniha emphasized that this success reflects a significant achievement in the international capital market, with the order book being approximately 4.18 times the offering amount. The new 6.5-year notes were priced at 9.625%, and the 10-year notes at 10.375%.
The proceeds from this Eurobond issuance will primarily address the fiscal deficit for the 2024 budget. The Debt Management Office engaged prominent banks as joint bookrunners for this transaction, underscoring its commitment to maintaining transparency and engaging actively with investors in the capital markets. The new notes will be traded on various international exchanges, signifying Nigeria’s enduring access to global financial markets.
This press release discusses Nigeria’s recent successful Eurobond issuance, which is part of the country’s strategy to engage with international financial markets and attract foreign investment. By issuing a total of $2.2 billion in bonds, Nigeria aims to support its fiscal plans and economic stability. Eurobonds are critical tools for sovereign financing, allowing governments to raise capital while appealing to a global investor base, thereby showcasing confidence in the national economy and governance.
In conclusion, Nigeria’s successful Eurobond issuance demonstrates robust international investor confidence and the effectiveness of its economic strategies. The impressive order book size indicates strong support for the country’s fiscal approach as it seeks to reduce its 2024 budget deficit and enhance its engagement with global capital markets. Continued investor interest is vital for Nigeria’s financial stability and growth, underscoring the need for consistent fiscal prudence and economic management.
Original Source: www.dmo.gov.ng
