Nigeria has successfully generated a $1.250 billion seven-year Eurobond in the International Capital Market (ICM).
According to a statement by the Debt Management Office (DMO) the success “makes Nigeria the first African country to access the ICM in 2022”.
The DMO had earlier disclosed that Nigeria’s total public debt rose from N32.915 trillion ($86.392 billion) to N39.556 trillion($95.779 billion) in December 2021.
The agency further explained that the Eurobond proceeds ”will be used to finance critical capital projects in the 2022 budget to bridge the infrastructure deficit and strengthen Nigeria’s economic recovery”.
It added that the $1 250 billion “will contribute directly and in full to the level of Nigeria’s External Reserves”.
According to the DMO, Nigeria’s ability to access the ICM at this time “is a confirmation of her established presence in the ICM and engagement with investors continuously.”
It disclosed that “the offer was launched at an Initial Price Thoughts of 8.75 per cent per annum and on the back of strong investor demand, Nigeria was able to revise the price guidance to 8.5 per cent per annum.
The agency also said that “with strong investor interest(in the instrument), the price was tightened to 8.375 per cent per annum. The Order Book remained high at $3.676 billion and retained quality investors”
