Nigeria’s $2.35b Eurobond records all time high $13b subscription

Nigeria’s $2.35 billion Eurobond launched yesterday attracted more than $13 billion subscription, the country’s all-time high global subscription to an offer.

The Federal Government offered two tranches of 10-year and 20-year Eurobonds maturing in 2036 and 2046 to the international capital markets. The issue is made up of $1.25 billion 10-year Eurobond and $1.10 billion 20-year Eurobond.

The transaction attracted a peak orderbook of over $13 billion, marking the largest ever orderbook achieved by the country. A previous $2.2 billion Eurobond issued in 2024 had attracted about $9 billion subscriptions.

The overwhelming show of enthusiasm by the international capital markets for long-term investments in the country enabled the government to close the transactions at lower rates.

The Long 10-year bond and the Long 20-year Notes were priced at coupons of 8.6308 per cent and 9.1297 per cent respectively.

The $2.35 billion Eurobond attracted a wide range of investors from several jurisdictions including the United Kingdom, North America, Europe, Asia and Middle East, amidst strong enthusiasm by Nigerian investors.

The net proceeds from the Eurobond issuance would be used to finance the 2025 fiscal deficit and support the government’s other financing needs.

President Bola Ahmed Tinubu said the huge success recorded by the issue was an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management.

He said: “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”.

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said the record subscription was an indication of the global confidence in the country’s macroeconomic outlook.

“This successful market access demonstrates the international community’s continued confidence in Nigeria’s reform trajectory and our commitment to sustainable, inclusive growth,” Edun said.

Director General, Debt Management Office (DMO), Patience Oniha, said the issuance attracted demand from a combination of fund managers, insurance and pension funds, hedge funds, banks and other financial institutions, underlining the country’s strong support base across geography and investor class.