The Debt Management Office (DMO) of Nigeria announced that the country has successfully redeemed a $500 million Eurobond on its maturity date of July 12, 2023. The Eurobond was initially issued in July 2018 as part of a dual-tranche totaling $1 billion, with a 10-year tenure and a coupon rate of 6.375% per annum.
This timely redemption of the Eurobond highlights Nigeria’s unwavering commitment to meeting its debt service obligations. In addition to this recent redemption, Nigeria has previously redeemed a $500 million Eurobond in July 2018, another $500 million Eurobond in January 2021, and a $300 million Diaspora Bond in June 2022. Cumulatively, these redemptions amount to $1.8 billion in securities retired by Nigeria in the International Capital Market (ICM).
Nigeria’s successful redemption of its Eurobonds and Diaspora Bond in the ICM over the past six years underscores the country’s robust debt management operations and strategic planning.
Eurobonds, being debt instruments denominated in a currency other than the issuer’s home currency, provide countries with an avenue to raise funds from international markets. Nigeria’s proactive approach to meeting its financial obligations contributes to its reputation as a responsible borrower on the global stage.