The Debt Management Office (DMO) has announced that Nigeria has fully redeemed a $500 million Eurobond on its maturity date, July 12, 2023.
The Eurobond, a debt instrument denominated in a currency different from the issuing country’s home currency, showcases Nigeria’s commitment to fulfilling its debt service obligations, according to the DMO statement issued on Wednesday.
The Eurobond, part of a dual-tranche USD1 billion Eurobond and issued in July 2013, had a ten-year tenor with a coupon rate of 6.375 percent per annum.
The statement further revealed that this successful redemption adds to Nigeria’s previous redemptions, including a USD500 million Eurobond in July 2018, another USD500 million Eurobond in January 2021, and a USD300 million Diaspora Bond in June 2022.
Consequently, Nigeria has redeemed a total of USD1.8 billion in securities in the International Capital Market (ICM).
The redemption of Nigeria’s Eurobonds and Diaspora Bond over the past six years demonstrates the nation’s effective debt management operations and planning, as stated in the official statement.
“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 statement reads.
“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.
“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.”