Nigeria’s external reserves will rise to 54 months high of $45 billion this month following the conclusion of federal government’s $2.5 billion Eurobond this week.
The Eurobond, which commenced last week with the announcement of its pricing on Thursday, will be concluded on Friday.
According to the Ministry of Finance, the $2.5 billion Eurobond, which attracted buying interest of $11.5 billion, comprises a $1.25 billion 12-year series and a $1.25 billion 20-year series. The 12-year series comes with interest at a rate of 7.143 percent, while the 20-year series will bear interest at a rate of 7.696 percent, and, in each case, will be repayable with a bullet repayment of the principal on maturity.
The offering is expected to close on or about February 23, 2018, subject to the satisfaction of various customary closing conditions.
Though the purpose of the Eurobond issuance is to refinance domestic debts, proceeds of the bond will, among other things, accelerate accretion to the nation’s external reserves.
