Nigeria has marked a triumphant re-entry into global debt markets, clinching $2.35 billion via Eurobonds after attracting a historic $13 billion in bids—the highest demand ever recorded for a Nigerian issuance.
The Debt Management Office (DMO) hailed the operation as evidence of robust international faith in the nation’s policy reforms, budget management, and economic prospects. The bonds were oversubscribed by 477%, undeterred by ongoing global instability and U.S. rhetoric regarding potential intervention over alleged religious persecution.
Bond Structure and Pricing
The fundraising comprised two segments:
– $1.25 billion in 10-year bonds due 2036, priced to yield 8.6308%.
– $1.10 billion in 20-year bonds due 2046, yielding 9.1297%.
“This deal set a new benchmark with a peak order book exceeding $13 billion,” the DMO stated. “It reflects widespread backing from diverse regions and investor types, including asset managers, insurers, pension funds, hedge funds, banks, and other institutions.”
Orders flowed in from the UK, North America, continental Europe, Asia, the Middle East, and notably from domestic Nigerian participants—a sign, the agency said, of alignment with the country’s stabilized macroeconomic policies.
The securities will list on the UK Listing Authority’s official register and trade on the London Stock Exchange’s main market, alongside Nigeria’s FMDQ Securities Exchange and Nigerian Exchange Limited (NGX).
Funds will bridge the 2025 budget shortfall and address additional government financing requirements.
Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank served as joint bookrunners, with FSDH Merchant Bank as financial advisor.
Leadership Reactions
President Bola Tinubu welcomed the outcome as validation of Nigeria’s reform efforts. “It solidifies our standing as a trusted player in international finance,” he said.
Finance Minister Wale Edun echoed that the issuance signals enduring global trust in Nigeria’s path toward equitable and lasting development.
DMO Director-General Patience Oniha called it a pivotal step in securing extended capital to advance the administration’s priorities, while advancing goals of varied and sustainable funding streams.
Background Context
The initiative was first signaled on October 16 by presidential finance advisor Sanyade Okoli, targeting around $2.3 billion for debt refinancing.
Prior to the launch, Nigeria’s existing Eurobonds encountered selling pressure in October amid investor wariness over fiscal strains and climbing worldwide rates. Longer maturities, such as the 7.625% 2047 and 8.25% 2051 papers, dipped sharply before a late-month rebound.
The successful close underscores a turnaround, positioning Nigeria favorably for future capital access despite external challenges.
