Nigeria, Wednesday, raised a $1, 25 billion Eurobond in the International Capital Market.
A statement by the Debt Management, last night indicated that the Eurobond had a 7-year tenor and singled out Nigeria as the first African nation to access funds from the International Capital Market, in 2022.
The statement reads in full, โNigeria has today priced a USD 1.250 billion 7-year Eurobond in the International Capital Market (ICM). This development makes Nigeria the first African country to access the ICM in 2022.
โNigeriaโs ability 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 Offer was launched at an Initial Price.
โ Thoughts of 8.75% per annum and on the back of strong investor demand, Nigeria was able to revise the price guidance to 8.5% per annum.
โ The Order Book continued to grow, reaching a peak of USD 4 billion. The Order Book included many quality investors in the United States, Europe and Asia.
โWith this strong investor interest, the price was tightened to 8.375% per annum, the Order Book still remained high at USD 3.676 billion and retained the quality investors.
โNigerian investors also participated in the Offer with a total subscription of USD 60 million. The proceeds of the Eurobond will be used to finance critical capital projects in the Budget to bridge the deficit in infrastructure and strengthen Nigeriaโs economic recovery.
โEqually important, it would contribute directly and in full to the level of Nigeriaโs External Reserves.โ
