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Nigeria Plans For $6.2bn Eurobond Offer

The Federal Government has announced plans for a Eurobond issuance in the International Capital Market, ICM, to raise between $3 billion and $6.2 billion.

The Debt Management Office, DMO, said, yesterday, that virtual meetings with investors have been scheduled for today, September 17 and September 20, 2021.

It stated: “In order to avail local investors the opportunity to invest in the Eurobonds, meetings will also be held with local investors.

“This is the first time local investors will be included in the Roadshows, and this is one of the reasons a Nigerian Bookrunner (Chapel Hill Denham Advisory Services Ltd) was appointed as one of the Transaction Advisers

“Through the Eurobond issuance, Nigeria is expected to raise up to $3 billion but not more than $6.2 billion.”

According to the DMO, the issuance for which all statutory approvals have been received, would be to implement the New External Borrowing in the 2021 Appropriation Act and that “Proceeds are for the financing of various projects in the Act.”

The agency gave further insight, saying, “In addition to providing funding to part-finance the deficit in the 2021 Appropriation Act, the issuance of Eurobonds by Nigeria benefits the country in many other strategic ways; amongst which are: 1. It is an inflow of foreign exchange, leading to an increase in External Reserves.

“External Reserves help support the Naira Exchange Rate, and Nigeria’s sovereign rating.

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