Nigeria redeems $500m Eurobond, reinforcing commitment to debt service obligations

The Debt Management Office (DMO has announced the redemption of a $500 million Eurobond on its due date, reiterating the country’s unwavering commitment to meeting its debt service obligations.

This was contained in a statement by the DMO on Wednesday.

The Eurobond, which was issued in July 2013 as part of a dual-tranche $1 billion Eurobond, had a tenor of ten years and carried a coupon rate of 6.375% per annum.

The redemption marks Nigeria’s latest accomplishment in effectively managing its debt portfolio, following the successful redemption of a $500 million Eurobond in July 2018, another $500 million Eurobond in January 2021, and a $300 million Diaspora Bond in June 2022.

The statement read: “The Eurobond was issued in July 2013 (as part of a dual-tranche USD1 billion Eurobond) for a tenor of ten (10) years at a coupon of 6.375% per annum.

“Nigeria had previously redeemed a USD500 million Eurobond in July 2018, another USD500 million Eurobond in January 2021, and a USD300 million Diaspora Bond in June 2022. These, together with the USD500 million Eurobond redeemed today, bring the total amount of securities redeemed by Nigeria in the International Capital Market (ICM) to USD1.8 billion.

“Nigeria’s successful redemption of its Eurobonds and Diaspora Bond in the ICM over the past six (6) years is a demonstration of its strong debt management operations and planning.”