₦airaland Forum

The Eurobond issued today was oversubscribed four times, signaling deep investor confidence despite lingering geopolitical tension from Trump’s threat.

The dual-tranche offering, designed to raise external capital and diversify the nation’s funding sources, attracted over $9.1 billion, resulting in an oversubscription rate exceeding 400 percent. This demand allowed the Debt Management Office (DMO) to successfully price both the 10-year and 20-year tranches.

The 10-Year tranche saw seven times the demand, leading to an oversubscription of $4.9 billion (for an issued amount of $700 million), while the 20-year tranche saw its demand exceed $4.2 billion (for an issued amount of $1.5 billion).

The oversubscription is particularly notable as it came amidst a period of heightened market jitters stemming from US political developments, specifically the implied threat by President Donald Trump of military action in the country if its government doesn’t halt the killings of Christians by Islamist militants.

MT:
The Nigeria train has refused to stop.

It is the dawn of a new era.

The sleeping giant is waking up and the whole world is put on notice.

SmartPolician:
What has this news got to do with Trump?

Trump wants to launch attacks on isl..amic terrorists and their sympathizers are all over social media wailing!

What has that got to do with investments?

Flangelo12:
Wetin you know?

It means the international community is confident in the Nigeian project.

PDPdestroyer:
OP, see what you’ve caused now, my Obidient neighbour is refusing dinner because of this news. Seun kindly pull down this fake news

Flets:
Oga na lie, it’s too early to evaluate the impact.

Infact most foreign investors who were not privy to insecurity issues have been desperate in the past few days to liquidate and repatriate their investments.

Trump and US pronouncements have done a huge blow to the Nigerian Eurobond and money market.

Don’t doubt me, watch out for the capital flight in the next 30 days. Investors don’t do well with instability much more such that is backed by the US

As usual, Tinubu data boys will run propaganda riot on this topic as they have been instructed to do so but truth is that both local and foreign investors have in panic mood for the past 1 week

SmartPolician:
Which international community? Nigerians in diaspora are those buying that stuff.

lionshare:
https://businessday.ng/business-economy/article/nigerian-eurobond-oversubscribed-by-400-despite-trumps-threat/

Tini49:
We are blessed , thankful

thisweekng:
The Minister of Finance and Coordinating Minister of the Economy Chief Olawale Edun has said the last time Nigeria’s economy looked stable was about a decade ago.

He made this statement during his maiden press conference as Minister of Finance where he outlined President Bola Tinubu’s vision, agenda and strategy for the economy.

He said, “I think as we all know, we are not where we should be. The economy is barely growing above the rate of population growth.

“But it was not always so, and I think in trying to look at the way forward, if we now have a situation of slow growth, double-digit inflation, weak/depreciating exchange rate, as well as security concerns that are resulting in an economy that is not growing and not taking Nigerians out of poverty.

“If we think back to the last time when the economy was stable- when it was growing, when inflation was low, and the interest rate was affordable, that period was about a decade ago. Growth was about 6% in 2013 and 2014.”
Private sector to drive the economy

https://nairametrics.com/2023/09/01/the-last-time-nigerias-economy-was-stable-was-about-a-decade-ago-wale-edun/

Satazaa:
Infact since Tinubu administration came into being this is by far the most outstanding confidence

institutional investors have shown on the Nigerian economy, the signal they are seeing and getting is soothing , this guys have their ears to the ground and the surge in our foreign reserves in the past few months has boosted their confidence

shakomende:
Despite wariness over the security situation in Nigeria, Africa’s second largest economy, the country’s $1 billion Eurobond offering targeted at being used to finance power projects was four times oversubscribed this past Tuesday due to high investor demand.

“We’re very happy that at this time, when the markets are exhibiting turbulence, we were able to (achieve) … four times oversubscription,” Nigeria’s Finance Minister, Dr. Ngozi Okonjo-Iweala said to journalists after the bond issue.

“The coupon shows confidence in the Nigerian economy,” she said. “We saw a window of opportunity … appetite for our paper was strong,” she continued.

“The quality of the investors is very high, the majority of the investors are from the United States, then followed by Europe, especially the United kingdom, and then Asia, so those are the top three investors and it is a long list, and because it was oversubscribed we could not even meet the demand of some them. Over 200 investors were not able to get any share of the issue because it was oversubscribed,” she said.

She continued:

As you know, this money is designed to support infrastructure projects within the country. It is not for budget support but directly for infrastructure…We are going to try and make sure that these investments are visible ones that Nigerians can see to ensure this money is utilised in a proper way.

The issue was subscribed by top financial asset managers namely HSBC, Global Asset Management, Wellington Management Company and Blackrock among others.

According to IFR, a Thomson Reuters analysis service, “Nigeria issued a $500 million 5-year bond at a yield of 5.375 percent and a $500 million 10-year bond with a yield of 6.625 percent.”

As of March 2013, according to Nigeria’s Debt Management Office (DMO), its total debt stands at 17 percent of GDP comprising about N6.5 trillion in domestic debt and $6.67 billion in foreign debt.

In addition, the country’s budget deficit is estimated to narrow to 1.85 percent of GDP in 2013.

Plans are currently underway to float a $100 million Diaspora bond targeted at Nigerians living abroad who want to invest in the country.
http://www.cp-africa.com/2013/07/04/nigerias-1-billion-eurobond-for-power-projects-oversubscribed-due-to-high-investor-demand/

spiSeyi:
Dey calm down, the giant is dead if not bandits won't be doing live videos on TikTok with no arrest made