Nigerian govt repays $500bn Eurobond in July, $1.8bn in last five years

The Debt Management Office (DMO) has disclosed the Federal Government has redeemed a $500 million Eurobond on its due date.

According to a statement by the debt office, the due date to redeem the Eurobond, which was issued in July 2013, was on July 12, 2023.

Redemption of a bond is the complete repayment of a total debt, which is the principal amount, the amount invested or loaned, and any interest owed to the due date.

The debt office revealed that the Eurobond issued 10 years ago was part of a dual-tranche $1 billion Eurobond that has 10 years tenor and a 6.375 per cent per annum coupon.

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DMO reported that this is one of many Eurobonds redeemed by the Nigerian government, with three done between 2018 and 2022.

“Nigeria had previously redeemed a USD500 million Eurobond in July 2018, another USD500 million Eurobond in January 2021, and a USD300 million Diaspora Bond in June 2022,” the DMO said.

“These, together with the USD500 million Eurobond redeemed today, bring the total amount of securities redeemed by Nigeria in the International Capital Market (ICM) to USD1.8 billion,” DMO said.

The redemption, according to the debt office, is a testament to the Nigerian government’s strong debt management, “Nigeria’s successful redemption of its Eurobonds and Diaspora Bond in the ICM over the past six (6) years is a demonstration of its strong debt management operations and planning,” the statement reads.

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