FG Secures $2.2 Billion Eurobond Amid Surging Investor Demand

The Federal Government has successfully raised $2.2 billion through a dual-tranche Eurobond issuance, underscoring renewed investor confidence in the country’s economic reforms. The bonds, maturing in 2031 and 2034, attracted peak orderbook subscriptions exceeding $9.0 billion, signaling robust global interest despite challenging market conditions.

The 6.5-year bond secured $700 million at a coupon rate of 9.625%, while the 10-year bond raised $1.5 billion at a coupon rate of 10.375%.
Investors from Europe, North America, Asia, the Middle East, and Nigeria participated, with demand coming from fund managers, pension funds, hedge funds, and banks.

“This successful issuance reflects the growing confidence in President Bola Tinubu’s administration and its commitment to stabilizing the Nigerian economy,” said Olawale Edun, Minister of Finance and Coordinating Minister of the Economy.

Central Bank Governor Olayemi Cardoso echoed this sentiment, emphasizing the country’s improved liquidity and continued access to international capital markets. Proceeds from the issuance will be used to finance Nigeria’s 2024 fiscal deficit and other budgetary priorities.

Nigeria’s Debt Management Office (DMO) Director-General Patience Oniha highlighted the strong investor appetite, noting that the bonds were priced competitively, reflecting confidence in Nigeria’s credit resilience.
The bonds will trade on the London Stock Exchange, FMDQ Securities Exchange, and Nigerian Exchange.

This successful Eurobond issuance marks a milestone in Nigeria’s efforts to diversify its funding sources and drive sustainable economic growth.