Nigeria raised $4 billion in Eurobond, dubbed one of the biggest financial trade in Africa
In what is seen as “one of the biggest financial trade to come out of Africa in 2021,” Nigeria raised $4 billion via Eurobond.
This is according to a press release from the Debt Management Office (DMO).
“The Order book peaked at $12.2 billion, which enabled the Federal Government to raise $1 billion more than the $3 billion it initially announced,” the DMO said.
Bids were received from Europe, America and Asia with participation from local investors. The government had arranged a two-day call with investors last week and on Monday, with the DMO saying that the bond would be priced following the meetings.
The notice set September. 28 for the bond settlement, which will be listed on the London and Nigerian Stock Exchanges.
The Eurobonds are part of a government plan to raise 2.343 trillion naira ($5.71 billion) in external financing to help fund spending in 2021 and to partly finance the 5.6 trillion naira deficit.
DMO issued the debt in tranches of three tenors. It raised $1.25 billion for seven years at a yield of 6.125% and sold a 12-year bond at 7.375% to fetch $1.5 billion. A 30-year tranche of $1.25 billion was sold at 8.25%.
On the upcoming Eurobond issue, Nigeria chose JPMorgan, Citigroup, Standard Chartered, and Goldman Sachs, as well as local firm Chapel Hill Denham.
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The sale achieved the lowest (outstanding) Nigerian bank Eurobond coupon, backed by a $1.6 billion orderbook that was nearly 3x oversubscribed, making it the highest orderbook for a Nigerian bank Eurobond transaction ever.
