- President Bola Tinubu's government has successfully redeemed a $500 million Eurobond
- The Eurobond was borrowed by the government of former President Goodluck Jonathan in 2013
- The Debt Management Office said the debt was repaid on July 12, 2023, due date.
The Nigerian government of President Bola Tinubu has repaid a $500 million Eurobond taken by the government of former President Goodluck Jonathan 10 years ago.
The Debt Management Office disclosed this in a statement in Abuja on Monday and said the Eurobond was paid on Wednesday, July 12, 2023, the due date.
Debt was issued as a $1 billion tranche Eurobond
Daily Trust reports that Eurobonds are debt instruments denominated in a currency other than the country's home currency or market in which it is issued.
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According to the DMO, the successful repayment of the Eurobond indicates Nigeria'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."
"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 demonstrates its strong debt management operations and planning."
Nigeria's public debt rises to N82 billion
The development comes as Nigeria's public debt rose to N82 trillion from N77 trillion before the Central Bank of Nigeria (CBN) exchange rate unification, announced on Wednesday, June 14, 2023.
According to a press release by the CBN, all exchange rate windows are collapsed into the Importers and Exporters (I&E) window, showing a merger of the multiple exchange rates.
The unification has seen the naira fall to N664 per dollar and has attracted severe consequences for the nation's economy, including a spike in public debt.
Tinubu Set to repay Nigeria’s $500 million eurobond debt in July
Earlier Legit.ng reported that President Bola Tinubu’s government will embark on its first debt-servicing this July to redeem a $500 million Eurobond as Nigeria continues to battle economic challenges.
According to data from the Debt Management Office (DMO), a $500 million Eurobond loan is due for repayment this month in line with its conditions.
The Nigerian government obtained the loan five years ago at a coupon rate of 6.375% per annum.