Nigeria to Issue $1.7 Billion Eurobonds to Boost Economic Reforms
The Federal Government of Nigeria plans to issue $1.7 billion in Eurobonds as part of a larger $2.2 billion external borrowing package aimed at supporting economic reforms and addressing financial challenges.
️ Key Details:
• Announced by: Wale Edun, Minister of Finance and Coordinating Minister of the Economy.
• Occasion: Federal Executive Council (FEC) meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja.
• Objective:
1. Strengthen Nigeria’s finances.
2. Complete the federal government’s external borrowing programme.
Breakdown of the $2.2 Billion Financing Package:
• Eurobonds: $1.7 billion.
• Sukuk Financing: $500 million.
Why Now?
• Favorable global conditions, including two consecutive interest rate cuts in the United States (now at 4.5–4.75%), have created a supportive environment for Nigeria to re-enter the Eurobond market.
️ Timeline:
• The borrowing will be executed within the 2024 fiscal year, pending National Assembly approval.
• The structure and specifics of the funding will be determined by market conditions and recommendations from financial advisers.
Context:
• Nigeria last accessed the Eurobond market two years ago, and analysts had anticipated an earlier return this year. The delay was influenced by the need for better global borrowing conditions, which have now materialized.
This move marks a significant step in addressing Nigeria’s financial needs and aligning with broader economic reforms. Stay tuned for updates as the government finalizes its borrowing strategy!
The Federal Government of Nigeria plans to issue $1.7 billion in Eurobonds as part of a larger $2.2 billion external borrowing package aimed at supporting economic reforms and addressing financial challenges.
️ Key Details:
• Announced by: Wale Edun, Minister of Finance and Coordinating Minister of the Economy.
• Occasion: Federal Executive Council (FEC) meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja.
• Objective:
1. Strengthen Nigeria’s finances.
2. Complete the federal government’s external borrowing programme.
Breakdown of the $2.2 Billion Financing Package:
• Eurobonds: $1.7 billion.
• Sukuk Financing: $500 million.
Why Now?
• Favorable global conditions, including two consecutive interest rate cuts in the United States (now at 4.5–4.75%), have created a supportive environment for Nigeria to re-enter the Eurobond market.
️ Timeline:
• The borrowing will be executed within the 2024 fiscal year, pending National Assembly approval.
• The structure and specifics of the funding will be determined by market conditions and recommendations from financial advisers.
Context:
• Nigeria last accessed the Eurobond market two years ago, and analysts had anticipated an earlier return this year. The delay was influenced by the need for better global borrowing conditions, which have now materialized.
This move marks a significant step in addressing Nigeria’s financial needs and aligning with broader economic reforms. Stay tuned for updates as the government finalizes its borrowing strategy!