Nigeria Gain Access To ICM, Raising $1.25 Billion In Eurobonds

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Nigeria Gain Access To ICM, Raising $1.25 Billion In Eurobonds
Nigeria Gain Access To ICM, Raising $1.25 Billion In Eurobonds

Nigeria has officially raised $1.25 billion in the International Capital Market through the issuance of seven-year Eurobonds (ICM).

Patience Oniha, Director-General of the Debt Management Office (DMO), announced this in a statement on Thursday.

According to Oniha, Nigeria has become the first African country to gain access to the ICM in 2022 as a result of this achievement.

According to her, the country’s ability to access Eurobonds at this time was a confirmation of her long-standing presence with the ICM and ongoing engagement with investors.

She stated that the bond proceeds would be used to fund the budget and bridge infrastructure deficits.

“The offer was launched at an initial price thought of 8.75 percent per annum, and Nigeria was able to reverse the price guidance to 8.5 percent per annum due to strong investor demand.”

“The order book continued to grow, reaching a high of $4 billion,” she said.

 

She stated that the order book included many high-quality investors from the United States, Europe, and Asia.

 

“With this strong investor interest, the price was tightened at 8.37 percent per annum, the order book remained high at $3.67 billion, and quality investors were retained,” she said.

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She stated that Nigerian investors took part in the offer as well, with a total subscription of $60 million.

She went on to say that the Eurobonds would also help the economy recover and contribute directly and fully to Nigeria’s external reserves.

According to the News  report, the DMO revealed earlier on Thursday that Nigeria’s total debt stock as of December 2021 was N39.55 trillion.