NIGERIA’S $2.35 BILLION EUROBOND OVERSUBSCRIBED BY OVER 450%
The Debt Management Office (DMO) of Nigeria announced a successful issuance of US$2.35 billion in Eurobonds, split into two tranches: approximately US$1.25 billion maturing in 2036 (10-year) and US$1.10 billion maturing in 2046 (20-year). TheCable+5Vanguard News+5Nairametrics+5
Despite geopolitical headwinds—including threats of U.S. military action and escalating security concerns—the offering drew a peak orderbook of over US$13 billion, meaning the bonds were oversubscribed by roughly 453% to 477% (i.e., more than four to five times the target). Nairametrics The 10-year tranche was priced at around 8.63% and the 20-year at about 9.13% yield. Vanguard News
Investor interest included pension funds, insurance companies, hedge funds, banks and asset managers from the UK, North America, Europe, Asia and the Middle East—as well as domestic Nigerian investors. TheCable+1 Proceeds are earmarked to help finance Nigeria’s 2025 fiscal deficit and support ongoing structural reforms. Channels Television+1
Flashpoint Summary:
The robust demand and massive oversubscription signal strong global investor confidence in Nigeria’s reform agenda and macroeconomic policy. However, heavy reliance on new debt also raises questions about long-term sustainability, foreign-currency exposure, and the ability to convert these borrowings into productive growth.
🔗 Source References:
- TheCable: “Nigeria’s $2.2bn eurobond records ‘largest-ever’ oversubscription” TheCable
- BusinessPost: “Investors Oversubscribe Nigeria’s $2.25bn Eurobond by 470%” Business Post Nigeria
- Nairametrics: “Eurobonds: Nigeria raises $2.35 billion after record $13 billion investor demand”
