Debt Spree Continues As Nigeria Raises $500m In Eurobonds

Nairametrics| Nigeria on Wednesday announced that it has finally raised $500 million via a 15-year Eurobond issuance. The bonds were raised at a yield of 7.5%. The $1 billion Eurobond sale was raised at a yield of 7.87%.

After a successful $1 billion Eurobond issuance last month, the government approached the National Assembly to raise an additional $500m. It explained that it wanted to take advantage of favourable market conditions to issue a Eurobond Debt Instrument of $500 million “to fund the implementation of the 2016 budget,”

The Senate on the 22nd of March unanimously approved the extra $500 million issuance,paving the way for this issuance.

The loan now forecloses any future Eurobond borrowing by the government as they have now exhausted the quota approved by the National Assembly.

Proceeds of the $500 million Eurobond will be used to fund capital projects in the 2016 budget.

Nigeria total external debt stock is now $11.5 billion following the completion of the $1.5 billion Eurobonds sale. The loans are made up of $8.2 billion in multilateral loans, $1.8 billion in bilateral loans and another $1.5 billion in Eurobonds.