Nigeria Redeems $500 Million Eurobond Debt

Nigeria has redeemed a $500 million Eurobond taken by the administration of ex-President Goodluck Jonathan in 2013.

The Debt Management Office (DMO), which disclosed this in a statement issued in Abuja, on Wednesday, said the Eurobond was paid on July 12, 2023, its due date.

Eurobond is a debt instrument that’s denominated in a currency other than the home currency of the country or market in which it is issued.

The DMO said the successful redemption of the Eurobond shows the country’s commitment to meeting its debt service obligations.

“The Eurobond was issued in July 2013 (as part of a dual-tranche USD1 billion Eurobond) for a tenor of ten (10) years at a coupon of 6.375% per annum.”

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“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.

“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.”