With the successful subscription of the $2.35 billion Eurobond issuance, which was oversubscribed by $10.65 billion, Nigeria’s public debt is expected to rise by $34.63 billion on average, Pinnacle Daily can report.
The nation’s Debt Management Office (DMO) on Wednesday, November 5, disclosed that Nigeria had returned to the international capital market to raise a $2.35 billion Eurobond issuance.
But the offer attracted orders worth $13 billion, representing an oversubscription by 453 per cent, or $10.65 billion.
According to the DMO, the $2.35 billion Eurobonds maturing in 2036 (long 10-year) and 2046 (long 20-year) are placed in the international capital markets, with $1.25 billion and $1.10 billion placed in the 2036 and 2046 maturities, respectively.
READ ALSO: Nigeria’s Inflation to Drop Further to 16.3% – Report
It hinted that the 10-year bond and the 20-year notes were priced at coupons/yields of 8.625 per cent and 9.125 per cent, respectively.
A rough calculation indicates that Nigeria may be repaying an average of $34.63 billion from the $2.35 billion Eurobond issuance, further raising its public debt to N152.4 trillion.
Pinnacle Daily reports that the oversubscription of the $2.35 billion Eurobond comes despite United States President Donald Trump’s designation of Nigeria as a “Country of Particular Concern” over alleged widespread killings of Christians, rising religious intolerance, and his further threat of military action if the government fails to curb the violence.
It reflects strong investor appetite and signals renewed global confidence in Nigeria’s economic reform trajectory and resilience amid rising geopolitical tension.
According to the DMO, Nigeria is pleased to have attracted a wide range of investors from multiple jurisdictions, including the United Kingdom, North America, Europe, Asia, and the Middle East, and participation from Nigerian investors, which it views as an expression of continued investor confidence in the country’s sound macroeconomic policy framework and prudent fiscal and monetary management.
READ ALSO: FG Owes N141.08trn as Nigeria’s Public Debt Rises to N152.4trn in June
The transaction attracted a peak order book of over US$13 billion, marking the largest ever order book achieved by the Republic. This significant milestone underscores the strong support for the transaction across geography and investor class.
It added that with respect to investor class, demand came from a combination of fund managers, insurance and pension funds, hedge funds, banks and other financial institutions.
In his remarks, President Bola Ahmed Tinubu stated, “We are delighted by the strong investor confidence demonstrated in our country and our reform agenda. This development reaffirms Nigeria’s position as a recognised and credible participant in the global capital market.”
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, added, “This successful market access demonstrates the international community’s continued confidence in Nigeria’s reform trajectory and our commitment to sustainable, inclusive growth.”
Also, the DMO Director-General, Patience Oniha, remarked, “Nigeria’s ability to access the Eurobond Market to raise long-term funding needed to support the growth agenda of President Bola Ahmed Tinubu is a major achievement for Nigeria and is consistent with the DMO’s objectives of supporting development and diversifying funding sources.”
The DMO stated further that the Notes would be admitted to the official list of the UK Listing Authority and available to trade on the London Stock Exchange’s regulated market, the FMDQ Securities Exchange Limited and the Nigerian Exchange Limited.
It said the proceeds from this Eurobond issuance will be used to finance the 2025 fiscal deficit and support the government’s other financing needs.
READ ALSO: How Trump’s Threat Can Affect Nigeria’s Economy – Expert
“Nigeria mandated Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan and Standard Chartered Bank as joint bookrunners. FSDH Merchant Bank Limited acted as financial adviser on the issuance,” DMO added.
Pinnacle Daily reported on October 15 that Nigeria was set to issue a $2.3 billion Eurobond, which will help refinance a $1.18 billion Eurobond maturing in November as part of its strategy to refinance existing debt and boost economic stability.
The offering is the first since the country accessed the market in December.
The DMO sees refinancing of maturing Eurobonds through fresh borrowing as a standard practice in international debt markets, as it helps Nigeria avoid default while maintaining investor confidence.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
