Nigeria has pulled in a $1.250billion seven-year Eurobond in the International Capital Market (ICM).Proceeds of the Eurobond will be used to finance critical capital projects in the 2022 Budget to bridge infrastructure deficit and strengthen Nigeria’s economic recovery.
This was announced by the Debt Management Office (DMO) in a statement on Thursday that the Eurobond offer was launched at an initial price of 8.75 per cent per annum, adding that on the back of strong investor demand, Nigeria was able to revise the price guidance to 8.5 per cent per annum. According to the DMO, the Order Book continued to grow, reaching a peak of $4 billion.
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 annum; the Order Book still remained high at USD 3.676 billion and retained the quality investors.
“Nigerian investors also participated in the Offer with a total subscription of USD60 million” The proceeds of the Eurobond will be used to finance critical capital projects in the Budget to bridge the deficit in infrastructure and strengthen Nigeria’s economic recovery.
“Equally important, it would contribute directly and in full to the level of Nigeria’s external reserves,” the DMO said Nigeria’s ability to access the ICM at this time underscores her established presence in the ICM and engagement with investors on a continuous basis.
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