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HomeTop NewsNigeria prices $1.25 bln in 7-year Eurobond at 8.37% rate

Nigeria prices $1.25 bln in 7-year Eurobond at 8.37% rate

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By Oludare Mayowa

Nigeria on Thursday said it priced $1.25 billion in 7-yeaar Eurobond in the international Capital Market (ICM), becoming the first Africa country to so doing.

According to a statement by the Debt Management Office (DMO), “this development makes Nigeria the first African country to access the ICM in 2022.”

The debt office said the ability of the country 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 DMO said the offer was launched at an initial price  Though of 8.75 percent annum and on the back of strong investors demand, “Nigeria was able to revise the price guidance to 8.5 percent per annum.

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The Order Book continue to grow, reaching a peak of $4 billion. The Order Book included many quality investors in the United States, Europe and Asia.

“With this strong investors interest, the price was lightened to 8.375 percent annum, the Order Book still remained high at $3.67 billion and retained the quality investors.

“Nigerian investors also participated in the offer with a total subscription of $60 million.”

The debt office said the proceed 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,” the DMO state in the statement.

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