Nigeria Weighs More Debt Sales After $4 Billion Eurobond Splurge

Nigeria is weighing whether to sell more debt this year following the success of its Eurobond offering.

The government raised $4 billion from international investors Tuesday after receiving offers for four times the $3 billion it had initially targeted. Yields on the multi-tranche loans ranged from 6.125% for the seven-year tenor, and 8.25% for its 30-year issue.

Finance Minister Ms. Zainab Ahmed said last month the government is targeting raising $6.1 billion this year, with half of that amount expected to come from bilateral and multilateral sources.

The country might seek to raise the whole amount through the sale of Eurobonds “if tenors and pricing are good,” Debt Management Office Director-General, Ms. Patience Oniha said. “We will monitor the markets while still exploring other sources,” she said in an emailed response to questions.

Tuesday’s debt sale was the first by Nigeria in three years and provides the nation’s central bank room to boost the supply of dollars, a shortage of which had prompted the regulator to ration foreign exchange.

Africa’s largest crude producer avoided external borrowing since 2018 after oil price plunged, cutting revenue and increasing the proportion of income it has to set aside to repay interest on its debts to above 70%.

Bloomberg