Nigeria says it has fulfilled Thursday, part of its bargain in a dollar-denominated bond issued to investors. The offshore debt which matures today is a $500 million Eurobonds issued in 2011, and will be paid at an interest rate of 6.75 percent, the Debt Management Office said in a circular, noting that funds for the repayment of the Eurobond have been made available to the government.
Investors risk perception of Africa’s biggest economy has seen some improvements, helped by the increase in crude oil prices as well as the external reserves, and this has caused yields of Nigeria Eurobonds to tumble as the price rally Interest on the dollar-denominated bond came to 6.75 percent, about half the amount interest on the instrument was in March last year when the global pandemic sliced off nearly 50 percent of oil revenue.
Zainab Ahmed, Nigeria’s minister of finance, budget and national planning, disclosed that the government will issue Eurobonds this year to fund the N13.6 trillion 2021 budget if market conditions were favourable.
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The DMO noted that the Eurobond which is being redeemed was Nigeria’s first foray into the International Capital Market (ICM), and it enabled the government to diversify its sources of funding as it successfully raised a total of $10,668.35 million thereafter, making a total of $11,168.35 million to finance the implementation of the Federal Budgets.
This is in addition to contributing to Nigeria’s External Reserves, DMO says
“By this development, Nigeria continues to demonstrate in practical terms, its commitment towards honouring all its debt service obligations as and when due,” DMO says
