Nigeria’s $2.35bn Eurobond Smashes Records with $13bn Investor Demand

..Investors from the UK, US, Europe, Asia scramble for allocations

The Federal Government of Nigeria has successfully raised $2.35 billion (£1.84 billion) through a Eurobond sale, an operation that attracted a record level of interest from international investors.

The transaction generated an unprecedented orderbook of over $13 billion, marking the largest ever level of demand for a Nigerian sovereign bond issuance.

This significant oversubscription, more than five times the amount raised, is being viewed by the government as a powerful endorsement of its economic policies.

The funds were raised through two bond maturities. A total of $1.25 billion was secured for a “long 10-year” bond maturing in 2036, while a further $1.10 billion was raised through a “long 20-year” bond maturing in 2046. The bonds were priced at yields of 8.6308% and 9.1297% respectively.

In a statement, President Bola Ahmed Tinubu 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.”

The government highlighted that the demand came from a wide range of investors across the United Kingdom, North America, Europe, Asia, and the Middle East, with participation also from Nigerian investors. The investor base was described as a combination of Fund Managers, Insurance and Pension Funds, Hedge Funds, Banks and other Financial Institutions.

The Coordinating Minister of the Economy, Wale Edun, linked the success directly to the country’s economic direction. He stated, “This successful market access demonstrates the international community’s continued confidence in Nigeria’s reform trajectory and our commitment to sustainable, inclusive growth.”

Patience Oniha, the Director-General of the Debt Management Office (DMO), which led the issuance, emphasised the strategic importance of the deal.

She stated, “Nigeria’s ability to access the Eurobond Market to raise long-term funding needed to support the growth agenda of President Bola Ahmed Tinubu is a major achievement for Nigeria and is consistent with the DMO’s objectives of supporting development and diversifying funding sources.”

According to the official release, the proceeds from the Eurobond issuance will be used to finance the 2025 fiscal deficit and support the government’s other financing needs. The Notes will be listed on the London Stock Exchange, the FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited.

The issuance was managed by a consortium of international and local banks, including Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank, with FSDH Merchant Bank Limited acting as Financial Adviser.