FG suspends $950m Eurobond borrowing

06 Jun FG suspends $950m Eurobond borrowing

Finance Minister Zainab Ahmed has told Bloomberg that the Federal Government has suspended to raise about $950m selling overseas bonds, owing to unfavourable market conditions during the time frame approved for the fundraising.

Bloomberg reported Ahmed as saying in an interview on the sidelines of the Islamic Development Bank meetings in Egypt that, “We were not able to do that because the market pricing was not good and also the approval period for us has closed. The approval period was up to May 31, 2022, so we are not going to be able to take that one anymore.”

Nigeria was one of the first sovereigns to tap the Eurobond market after the start in late February of Russia’s war on Ukraine, which stoked commodity prices and inflation just as the US Federal Reserve raised interest rates.

Nigeria’s seven-year bond in March was priced to yield 8.375 per cent, compared to a similar maturity raised about eight months ago with a coupon of 6.125 per cent.