Nigeria to sell USD2.5 billion Eurobond

Nigeria to sell USD2.5 billion Eurobond

In its ambition to fund its budget deficit, Nigeria, Africa’s largest economy said it will be selling USD2.5 billion Eurobond.

Disclosing the plan to Reuters, Patience Oniha, the director-general of the Debt Management Office, said the Eurobond sale will be carried out in the middle of November.

Nigeria’s economy slipped into a recession last year after global crude oil prices plummeted that led to a 70% crash in public revenue.

The country has also sold NGN100 Sukuk bond to raise funds for the construction of key roads across the country. The bond was oversubscribed.

According to analysts, local investors are looking to benefit from higher interest rates currently fueled by a double-digit inflation estimated at 16.01% as at last month.

Nigeria has also racked up its borrowing plan through treasury bills, till date (since the last two years), the government has borrowed NGN3.7 trillion through the instrument.

Earlier this year, Nigeria sold its first Eurobond where it sold USD1 billion to foreign investors. The sale was oversubscribed because of the attractive interest rate placed on the instrument.