Nigeria emerges first in Africa to access ICM, raises $1.25bn Eurobonds

Nigeria emerges first in Africa to access ICM, raises $1.25bn Eurobonds

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

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

Oniha said that with this feat, Nigeria has become the first African country to access the ICM in 2022.

According to her, the country’s ability to access the Eurobonds at this time was a confirmation of her established presence with the ICM and engagement with investors on a continuous basis.

She said that the proceeds of the bonds would be used to finance the budget and bridge infrastructural deficits.

“The offer was launched at initial price thoughts of 8.75 percent per annum and on the back of strong investor demand, Nigeria was able to reverse the price guidance to 8.5 percent per annum.

“The order book continued to grow,  reaching a peak of four billion dollars,” she said.

She said that the order book included many quality investors in the U.S., Europe, and Asia.

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

She said that Nigerian investors also participated in the offer with a total subscription of 60 million dollars.

She added that the Eurobonds would also strengthen economic recovery and contribute directly and in full to the level of Nigeria’s External Reserves.

The News Agency of Nigeria (NAN) reports that the DMO had earlier on Thursday revealed that  Nigeria ’s ’total debt stock as of December 2021 was  N39.55 trillion.