Nigeria plans to redeem $500 mln maturing Eurobond from local debt sale
Nigeria said it will repay a $500 million Eurobond maturing this month with proceeds of a local debt sale and has raised financing from the domestic market.
The Director-General of the Debt Management Office (DMO) Patience Oniha said Nigeria would have no issues with accessing foreign exchange to repay the bond, according to a Reuters report on Tuesday.
Nigeria is facing its worst recession in 40 years brought on by an oil price crash, which has hammered its currency, created large financing needs and caused chronic dollar shortages, frustrating businesses and individuals.
The government had planned a Eurobond issue early last year to fund its budget deficit and refinance the $500 million eurobond before it decided to defer the sale due to the turmoil caused by the COVID-19 pandemic.
The West African country held its last Eurobond sale in 2018, its sixth such issue, where it raised $2.86 billion.