Nigeria raises $2.86bn in Eurobonds to fund deficit

Nigerian President Muhammadu Buhari. Photo: AP

Nigerian President Muhammadu Buhari. Photo: AP

Published Nov 15, 2018

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INTERNATIONAL - Nigeria raised $2.86 billion in Eurobonds on Wednesday across three maturities, to help fund its budget deficit, in a sale that was three times oversubscribed, the government said.

It priced the bonds with maturities of seven, 12 and 30 years at 7.625 percent, 8.75 percent and 9.25 percent, respectively.

Nigerian officials have been meeting investors at a roadshow organised by Citi and Standard Chartered in London this week prior to issuing the Eurobond.

The meeting led by Nigerian Finance Minister Zainab Ahmed, was attended by Budget Minister Udoma Udo Udoma, Central Bank Governor Godwin Emefiele and head of the Debt Management Office (DMO).

The government said demand for the dollar-denominated bond stood at $9.5 billion from global institutional investors. The bond would help Nigeria fund its budget deficit for 2018 and other financing needs, it said.

“Despite significant oil and wider macro market volatility, Nigeria has successfully raised its external debt requirements for the 2018 budget at a cost considerably lower than many of its peers across Sub-Sahara Africa,” the government said in a statement.

Nigeria sold $1.18 billion in seven-year tenor, $1 billion with 12-year maturity and $750 million for 30-years. The offer would close on Nov. 21.

REUTERS 

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