Breaking News

Nigeria Launches Eurobond Issuance In United States


Oluwasina Phillip

Nigeria today launched its planned Eurobond issue in New York, United States of America.

Recall that Nigeria’s Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed had said the country would hold roadshows for the dollar-denominated issuance, which aims to raise roughly $3bn, in Lagos and New York.

The government is also targeting raising the same amount via multilateral and bilateral borrowing to fund its 2021 budget deficit.

In attendance at the show is Central Bank of Nigeria Governor, Mr Godwin Emefiele; Director-General, Debt management office, Patience Oniha, DG Budget Office, Ben Akabueze and a host of other government officials.

The Order book peaked at $12.2bn, which enabled the Federal Government to raise $1bn more than the $3bn it initially announced,”

The DMO had in a statement on its website in September 2021 announced plans for a $3bn Eurobond issuance in the International Capital Market (ICM).

Virtual meetings with investors were held but Nigeria eventually raised $4bn through the issuance of Eurobonds, an amount that is $1bn more than what the government planned

Through the Eurobond issuance, Nigeria is expected to raise up to $3bn but no more than USD$6.2 billion.

The issuance for which all statutory approvals have been received, is for the purpose of implementing the New External Borrowing in the 2021 Appropriation Act. Proceeds are for the financing of various projects in the Act.

Other strategic benefits includes an inflow of foreign exchange, leading to an increase in External Reserves. External Reserves help support the Naira Exchange Rate, and Nigeria’s sovereign rating.

About Editor

Check Also

UAE Lifts Travel Ban on Nigerians

At last Nigerians will heave a sigh of relief after a long wait as the …

Leave a Reply