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HomeTop NewsNigeria raises $4 bln in Eurobond as order book peaked at $12.2...

Nigeria raises $4 bln in Eurobond as order book peaked at $12.2 bln

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By Oludare Mayowa

Nigeria has raised $4 billion worth of the Eurobonds after two days of virtual meeting with investors across the globe, $1 billion more than it initially proposed.

According to the Debt Management Office (DMO), the order book  peaked at $12.2 billion which enabled the government to raise $1 billion more than the $3 billion it initially announced.

“This exceptional performance has been described as ‘one of the biggest financial trades to come out of Africa in 2021’ and “an excellent outcome”, the DMO stated in a statement on Tuesday.

It said bids for the Eurobonds were received from investors in Europe and America, as well as Asia.

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“There was also good participants by local investors, the debt office said, noting that size of the order book and the quality of investors demonstrates confidence in Nigeria,” the DMO stated.

Breakdown of the Eurobonds showed that Nigeria raised $1.25 billion in 7-year debt at 6.125 percent, $1.5 billion of 12-year at 7.37 percent and $1.25 of 30-year bonds at 8.25 percent.

“The long tenors of the Eurobonds and the spread across different maturities are well aligned with Nigeria’s Debt Management Strategy, 2020 – 2023.

“Since the Eurobonds were issued as part of the New External Borrowing in the 2021 Appropriation Act, the raising of USD4 billion through Eurobonds provides a significant amount of funds to finance projects in the Act, thus contributing to the implementation of the 2021 Appropriation Act,” the DMO stated.

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