Nigeria is planning to reissue its $1.1 billion Eurobond due November this year, as part of its total Eurobond sale plan of $2.3 billion by the end of fourth quarter of 2025.
According to a letter written by President Tinubu to the Nigerian lawmakers on Tuesday, to raise $500 million of sukuk to be issued externally for the first time alongside the other amount.
“There are plans to issue Eurobonds in the fourth quarter of 2025, subject to market conditions,” Patience Oniha, director-general of the Debt Management Office, told Bloomberg via a text on Wednesday. “In terms of what we need it’s $2.3. billion,” with tenors depending on pricing, she said.
Nigeria’s Eurobond average yield dropped by 5 basis points week-on-week to 7.80 percent from 9.8 percent at the start of the year and over 11 percent at the peak of the global tariff war. Also the yield premium investors demand to hold Nigerian bonds rather than US Treasuries has fallen 300 basis points since April to the lowest level in seven years.
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The drop in yield to its current levels makes it affordable for Nigeria to issue new Eurobond.
“ We note that the timing would be advantageous, given the current strong foreign investor appetite for Nigerian government securities, underpinned by improved confidence in the economy following series of reform measures. Moreover, a well-received issuance may not only secure favourable pricing for Nigeria but also set the stage for domestic financial institutions to tap the international market, given maturities on the horizon,” CSL Stockbrokers mentioned in an earlier report
December last year the country saw an oversubscription of $2.2 billion at the international market after a two-year hiatus.
It will be joining countries like Angola and Kenya which have successfully issued $1.75 billion and $1.5 billion respectively.