Nigeria raises $4 billion Eurobond on healthy investor demand

PUBLISHED: Wed, 22 Sep 2021 07:53:51 GMT
Chijioke Ohuocha
JP Morgan Photo: Solvency Ii Wire

ABUJA, Sept 21 (Reuters) – Nigeria raised $4 billion via a Eurobond issue on Tuesday after investors demanded more than four times the amount on offer, the Debt Management Office (DMO) said.

The DMO said the West African country attracted demand of $12.2 billion for the notes, which enabled it to raise the value of its initial offering by $1 billion.

Nigeria opened its order book for the bond offering on Tuesday, aiming to issue the bond next week, according to a notice to investors seen by Reuters.

The West African country 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%.

Read more: Nigeria picks international banks for eurobond issue to finance deficit

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 Sept. 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.

Nigeria picked JPMorgan, Citigroup, Standard Chartered and Goldman Sachs as international bookrunners, and local firm Chapel Hill Denham on the forthcoming Eurobond issue.

($1 = 410.50 naira)

(Reporting by Chijioke Ohuocha; Editing by Catherine Evans and Edmund Blair)

Sign Up for Our Newsletter Daily Update
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.