FG raises $1.25bn through Eurobonds, says DMO

In a move to bridge the infrastructure deficit in the country, the Debt Management Office (DMO) has disclosed that the Federal Government raised a $1.250billion 7-year Eurobond in the International Capital Market (ICM).

The latest report by DMO stated that the development makes Nigeria the first African country to access the ICM in 2022.

The debt office said Nigeria’s ability to access the ICM at this time is a confirmation of her established presence in the ICM and engagement with investors on continuous basis.

DMO on its official website said: “The offer was launched at an initial price of 8.75 per cent per annum and on the back of strong investor demand, Nigeria was able to revise the price guidance to 8.5 per cent per annum. The order book continued to grow, reaching a peak of $4billion.

“The order Book included many quality investors in the United States, Europe and Asia. With this strong investor interest, the price was tightened to 8.375 per cent pre annum. The order book still remained high at $3.676billion and retained the quality investors. Nigerian investors also participated in the offer with a total subscription of $60million.

“The proceeds of the Eurobond will be used to finance critical capital projects in the budget to bridge the deficit in the infrastructure and strengthen Nigeria’s economic recovery.

“Equally important, it would contribute directly and in full to the level of Nigeria’s external reserves.”