DMO, World Bank push states’ debt management laws

By Emma Ujah

The federal government has raised the sum of $4 billion through Eurobonds.

The Debt Management Office (DMO) announced last night that the $3 billion offer was heavily oversubscribed,  as investors were ready to invest $12.2 billion. 

Consequently, the government decided to raise $1 billion more than the $3 billion original offer.

According to the DMO, “This exceptional performance has been described as ‘one of the biggest financial trades to come out of Africa in 2021 and an excellent outcome.”

It added that the size of the Order Book and the quality of investors demonstrated confidence in the Nigerian economy.

The bonds were in three tenors: seven-year, 12-year and 30.

READ ALSO: Stakeholders admonish government on cost-saving measure

The government raised $1.25 billion for seven years at a yield of 6.125% ; $1.5 billion from the 12-year bond at 7.375% and $1.25 billion was sold  for the 30-year tenor at 8.25%.

Settlement would take place on September 28 for the bond the bond which would be listed on the London and Nigerian Stock Exchanges.

The DMO explained that the Eurobonds were  part of a government plan to raise 2.343 trillion naira ($5.71 billion) in external financing to help fund spending in 2021 and to partly finance the 5.6 trillion naira deficit.

Vanguard News Nigeria

Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.