Nigeria’s Eurobond draws strong global demand

…Oversubscribed Fourfold Despite Geopolitical Uncertainty

Nigeria’s latest Eurobond issuance has recorded overwhelming success, with subscription levels reaching four times the offer amount—an outcome that underscores strong investor confidence amid global market unease.

The dual-tranche Eurobond, structured to mobilize external financing and broaden Nigeria’s funding mix, attracted bids exceeding $9.1 billion, representing an oversubscription rate of over 400 percent, according to the Debt Management Office (DMO).

Specifically, the 10-year tranche—for which the government sought $700 million—garnered more than $4.9 billion in bids, while the 20-year tranche, with a target of $1.5 billion, drew demand surpassing $4.2 billion.

The robust investor appetite came despite recent volatility in global markets following former U.S. President Donald Trump’s warning of potential military action against Nigeria over alleged persecution of Christians—a development that had triggered notable selloffs in Eurobond markets earlier in the week.

Analysts had anticipated that such geopolitical noise could weigh on investor sentiment, but the strong outcome suggests sustained confidence in Nigeria’s fiscal reforms and credit trajectory.

“I believe this issuance was bound to perform well,” said AbdulRauf Bello, Portfolio Manager at Cowrywise. “With improving fiscal indicators, a better credit rating outlook, and attractive yields between 9 and 10 percent—especially in light of recent Fed rate cuts—international investors saw a clear opportunity.”

The 10-year notes were priced at a yield of 8.75 percent, while the 20-year bonds priced at 9.25 percent. Maturities are set for January 2036 and January 2046, respectively.