Nigeria’s Eurobond: American Investors Are Largest Buyers, Says DMO

Debt Management Office (DMO) has said investors from the United States of America are the largest buyers of Nigeria’s $2.5 billion Eurobond. 

According to a new data by DMO, American investors purchased 55 per cent; British investors bought 32 per cent; and European investors took 11 per cent of Nigeria's Eurobond with a 12-year tenor. 

For Nigeria's Eurobond with

20-year tenor, American investors bought 59 per cent; while British and European investors purchased a combined 40 per cent. DMO said asset managers dominated the investors’ category purchasing 81 per cent of the Eurobond for 12 and 20 years tenor respectively. 

 The office added that hedge funds managers bought 13 per cent of 12-year tenor and 14 per cent of 20-year tenor respectively. It would be recalled that Federal Government of Nigeria had announced a $2.5 billion Eurobond of dual series notes under its global medium term note programme on February 15 this year. 

The Eurobond notes attracted significant interest from the global business community, with a peak order of over $11.5 billion.

DMO had said that proceeds of the Eurobond notes are expected to refinance domestic debt.