Foreign investors fell over themselves to get a bite of Nigeria’s 6.5- and 10-years Eurobonds, staking over $9 billion in a bid to get a share of the $2.2 billion the Debt Management Office (DMO) placed on the table.
This means that, instead of the $2.2 billion the Nigeria government sought, an excess of $6.8 billion was recorded, bringing total subscription to be over$9 billion.
The 6.5-year Eurobond paper was priced at 9.625 per cent, while the 10-year settled at 10.375 per cent. In a statement, DMO said the country attracted a wide range of investors from multiple jurisdictions.
Investors who participated in the Eurobonds offering include the United Kingdom, North America, Europe, Asia, the Middle East, and participation from Nigerian investors, the official statement revealed.
The authority viewed this as an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management, according to the authority.
DMO said the transaction attracted a peak order book of more than $9.0 billion, which underscores the strong support for the transaction across geography and investor class.
With respect to investor class, demand came from a combination of Fund Managers, Insurance and Pension Funds, Hedge Funds, Banks and other Financial Institutions.
Commenting, following the successful pricing, the Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, said, “Today’s successful issuance signposts increasing confidence in ongoing efforts of the President Bola Ahmed Tinubu, administration to stabilize the Nigerian economy and position it on the path of sustainable and inclusive growth for the benefit of all Nigerians.
“The broad range of investor appetite to invest in our Eurobonds is encouraging as we continue to diversify our funding sources and deepen our engagement with the international capital markets.”
Commenting on the notes’ pricing, the Director-General of the Debt Management Office (DMO), Patience Oniha, said: “With the successful pricing of the notes on an intra-day basis, Nigeria has registered a landmark achievement in the international capital market.
“The size of the Orderbook at approximately 4.18x of the offer amount, and the strong and diverse investor base helped to price the new 6.5-yr at 9.625 per cent, while new 10-year Notes was priced at 10.375 per cent.
“The DMO remains committed to maintaining transparency and open communication with investors and stakeholders and appreciates the continued confidence and support of the international and Nigerian investors who participated in the pricing.”
