New Telegraph

Nigeria’s Eurobond debt to hit $16.77bn

Nigeria’s Eurobond debt could increase to $16.77billion in the coming months if the Federal Government eventually decides to return to the Eurobond market for the balance  of its $6.1billion($2.1billion) external borrowing after the country successfully raised $4billion in September, findings by New Telegraph show.


According to the “2021 second quarter and half year Budget Implementation Report,” released by the Budget Office of the Federation recently, of the nation’s $33.47billion external debt stock as at June 30, 2021, Eurobond debt amounted to $10.67billion (12.70 percent).


The report stated: “Nigeria’s external debt stock as at 30th June 2021, stood at $33,468.93 million indicating a decrease of $608.94 million (1.85 percent) from the $32,859.99 million reported in the first quarter of 2021 but $1,991.79 million  (6.33 percent) increase above $31,477.14 million recorded in the second quarter of 2020.


“A breakdown of the external debt stock as at 30th June, 2021 revealed that Multilateral Debts amounted  to $18,368.41 million (54.88 percent), Non-Paris Club Bilateral Debts amounted to $4,250.46 million (12.70 percent), Commercial (Euro-Bond) amounted to $10,668.35 million (31.88 percent) while Promissory Notes accounted for the balance of $181.71 million (0.54 percent).”


However, given that Nigeria raised $4billion through Eurobonds on September 22, it means that the country’s Eurobond debt currently stands at $14.67billion, which could soon rise to $16.77billion if, as was widely reported in the media last week, the Federal Government is considering returning to the Eurobond market to raise a fresh $2.1billion.


Specifically, a national daily reported the Director- General of the Debt Management Office (DMO), Ms Patience Oniha, as stating in an interview, in London, that the government was considering a return to the Eurobonds market for the balance of its $6.1billion external borrowing after it successfully raised $4billion last month.


Oniha reportedly said that a global investors meeting and roadshow, organised by Nigeria, showed that international investors were still optimistic about the country’s credit status.


The DMO D-G was quoted as saying: “One of the questions that kept coming up was the balance of the new external borrowing for 2021, which is about $6.1billion. We are going to have a meeting with our transaction parties after this engagement if we will come back to the market for the balance.


“We need to assess the market to understand how to proceed. We remain confident international investors find our credit story enticing enough.”



In a report last week, analysts at FBNQuest Research stated that the country’s impressive return to the Eurobond market in September, where it succeeded in raising $4billion-$1billion more than the $3billion initially announced, could encourage the Federal Government to go back to the international debt market given that it had obtained the National Assembly’s approval for a $6.2billion external borrowing plan for the year, “and the prospect for multilateral financing is not very strong.”


As the analysts put it, “the FGN’s return to the Eurobond market last month was very successful.


The order book peaked at $12.2 billion, which enabled the government raise $4 billion – $1 billion more than the $3 billion initially announced – in 3 tranches of 7-year bonds ($1.25bn at 6.125%), 12-year bonds ($1.5bn at 7.375%), and 30-year bonds ($1.25bn at 8.250%).

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