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The Nigerian government raised USD 700 million in the shorter-term paper and USD 1.5 billion in the longer-dated maturity. The debt management office noted demand from Fund Managers, Insurance and Pension Funds, Hedge Funds, Banks, and other Financial Institutions.
Nigeria has raised USD 2.2 billion in its latest Eurobond auction, attracting over 300% in demand to finance its growing fiscal deficit, amid renewed investor confidence.
The issuance, which originally targeted USD 2.2 billion, was oversubscribed by 309%, attracting bids worth USD 9 billion from diverse foreign jurisdictions. The notes were priced at a coupon and reoffer yield of 9.625% for the 6.5-year paper and 10.375% for the 10-year notes maturing in 2031 and 2034 respectively.
The West African country made a return to the international capital markets for the first time since 2022, issuing two bonds to finance the 2024 fiscal deficit and support the government’s budgetary needs.
The Nigerian government raised USD 700 million in the shorter-term paper and USD 1.5 billion in the longer-dated maturity. The debt management office noted demand from Fund Managers, Insurance and Pension Funds, Hedge Funds, Banks, and other Financial Institutions.
Africa’s top oil producer has its credit ratings still under pressure, with a B- (Positive) from Fitch, B-(Stable) from S&P Global, and Caa1(Positive) from Moody’s.
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Nigeria’s budget currently faces a record deficit of 4.6 trillion Naira – 7.6% of the country’s GDP, driven by lower crude oil output and underperforming revenue collection.
