Kemi adeosun nigerias 1b eurobond oversubscribed at 7 87 interest rate
A great piece of news!
On July 22, 2015, Nigeria successfully issued its first Eurobond, a 7-year, $1 billion (approximately 1 billion Euros) bond, which was oversubscribed. The bond was priced at a yield of 7.87%, which is a relatively attractive rate considering the country's credit profile.
Here are some key details about the bond issue:
- Amount: The bond issue raised $1 billion (approximately 1 billion Euros), which is a significant milestone for Nigeria's debt management efforts.
- Tenor: The bond has a tenor of 7 years, which means it will mature in 2022.
- Yield: The bond was priced at a yield of 7.87%, which is a relatively attractive rate considering Nigeria's credit profile. The yield reflects the market's assessment of the country's creditworthiness and the risk associated with investing in Nigerian debt.
- Oversubscription: The bond issue was oversubscribed, meaning that investors demanded more bonds than were available. This is a positive sign for Nigeria's debt management efforts, as it indicates strong demand for the country's debt.
- Use of proceeds: The proceeds from the bond issue will be used to finance Nigeria's budget deficit, which is a significant challenge for the country. The funds will also be used to refinance existing debt and support infrastructure development projects.
Overall, the successful issuance of Nigeria's first Eurobond is a significant achievement for the country's debt management efforts. It demonstrates the country's ability to access international capital markets and diversify its funding sources.