Dec 3 (Lagos) - The Debt Management Office of the Federal Government has raised $ 2.2 billion in Dollar denominated debit also known as Eurobonds. The reason for this raise is to finance the budget deficit.
In a statement on Monday, the DMO said the bond has $700m and $1.5bn placed in the 2031 and 2034 maturities, respectively.
The notes were priced at a Coupon and Re-offer Yield of 9.625 per cent and 10.375 percent, respectively.
The yield that Nigeria has offered to foreign investors shows the desperation of the government to attract their investments. It is almost double of what those investors would get for similar investments in their home Countries. This is also a worry for us because Nigeria will have to come with interest payments in Dollars - something that will put pressure on the Naira. Offering such a high interest rate guaranteed the massive over-subscription.
reporting for easykobo.com on Dec 3 2024 from Lagos, Nigeria