Nigeria to launch $3bn dollar-denominated Eurobond on Oct. 11 with Lagos, NY roadshow

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Nigeria to launch $3bn dollar-denominated Eurobond on Oct. 11 with Lagos, NY roadshow

Nigeria, the largest economy in the African continent by size on the Gulf of Guinea which is expected to inflate 1.5 per cent this year following a 3.0 per cent contraction in a pandemic-rampaged 2020, would launch its slated Dollar-denominated Eurobond issuance on October 11, the beleaguered lower-middle-income country’s Finance Minister had said on Monday.

Apart from that, Nigeria’s Finance Minister Zainab Ahmed had said that the Govt. would assemble road-shows in Lagos and New York ahead of its dollar-denominated Eurobond issuance, which is expected to raise roughly $3 billion, adding “We have an approval in the 2021 budget to fund the budget deficit 50% locally and 50% externally.

We are planning to do about half of that in Eurobonds and the other half through other windows such as multilateral and bilateral sources”. On top of that, latest remark from Ahmed came forth weeks after the Nigerian parliament had approved a $6.2 billion in external borrowing in a bid to cover up a soaring budget deficit as inflation indicators continued to suffocate consumers.

Nigeria to launch Eurobond issuance on October 11

Apart from a planned $3 billion that the Government had been targeting to raise through a bond issuance, the Nigerian Govt. had also been vying to vent out a way to raise a similar amount through multilateral and bilateral borrowing in order to finance its 2021 budget deficit as beforementioned.

After a potential exit from a protracted recession in Q4, 2020 that had begun to engulf the economy back in the 2016s, Nigeria had been scuffling to step up growth momentum in context of a global-scale supply constrain alongside soaring raw materials’ prices, however, the country’s economy grew by 5.01 per cent over the second quarter.

Though, it remains to be seen whether the country’s Eurobond issuance could raise the planned upsum of $3 billion, as a soaring inflation coupled with a supply chain chaos had repeatedly dashed the Africa’s largest economy by size, which would more likely to dampen investors’ appetite, suggested analysts.