Nigeria now has a Eurobond issuance that has been oversubscribed by over four times the offer of $1.7 billion.
This re-entrance into the international bond market has seen Nigeria
raise $2.2 billion to finance its 2024 fiscal deficit under its Global Medium Term Note Programme.
The issuance featured two tranches of $700 million in a 6.5-year Eurobond maturing in 2031 at a 9.625% coupon rate and $1.5 billion in a 10-year bond maturing in 2034 with a 10.375% coupon rate.
The offering had a total subscription exceeding $9 billion despite Nigeria’s absence from the Eurobond market since 2021.
Although the success of the bonds and its significance to the economy is evident, the country’s rising debt profile remains a problem requiring careful and transparent fiscal management.