Nigeria’s latest Eurobond offer has been oversubscribed at $9.1 billion, marking Nigeria’s successful return to the international bond market after a two-year hiatus, in sign of a possible investors’ confidence in the West African country’s economy.
This is coming after a long wait, as the country issued a dual-tranche Eurobond offering under its Global Medium Term Note Programme to finance the country’s 2024 fiscal deficit today.
However, the issuance closed yesterday, although it was oversubscribed in excess of $9 billion, but the federal government eventually took just $2.2 billion across both bonds.
The federal government sold $700 million worth of the 6.5 year Eurobond maturing in 2031 at a coupon rate of 9.625 per cent and $1.5 billion of the 10-year tenure at 10.375 per cent.
It marked a pivotal moment in the country’s ongoing efforts to address its growing fiscal deficit, with the funds raised meant to primarily support Nigeria’s 2024 budget, which has come under pressure due to persistent revenue shortfalls and rising public spending.
