Nigeria’s Federal Government last week announced that its $1 billion Eurobond was over-subscribed by 780% at a decent yield of 7.875%.
The massive oversubscription was a clear signal of high investor confidence from foreign investors despite the gloom on the country’s economy which fell into a recession in 2016.
Nigeria’s finance minister, Kemi Adeosun said they received orders in excess of US$7.8 billion compared to a pre-issuance target of US$ 1.0 billion.
“This is despite continued volatility in emerging and frontier markets and shows confidence by the international investment community in Nigeria’s economic reform agenda.” Ms Adeosun was quoted by various media houses in Nigeria.
The Notes will bear interest at a rate of 7.875% and will mature on 16th February 2032 with a bullet repayment of the principal. The Republic intends to use the proceeds of the Notes to fund capital expenditures in the 2016 budget. The Notes represent the Republic’s third Eurobond issuance, following issuances in 2011 and 2013.