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UPDATE 2-Nigeria to repay $500 mln Eurobond, eyes debt market

Published 05/01/2021, 18:05
Updated 06/01/2021, 07:24
© Reuters.

(Adds comments and details)
By Chijioke Ohuocha
ABUJA, Jan 6 (Reuters) - Nigeria will repay a $500 million
Eurobond maturing this month with proceeds of a local bond
raised in the fourth quarter and is also monitoring
international debt market for new issues by frontier countries,
the head of the country's debt office said.
Sub-Saharan African governments will return to international
capital markets this year with Ghana, Kenya and Nigeria to issue
bonds as investors once again are expected to embrace more risk,
the Institute of International Finance has said. The West African country was also monitoring the terms of
foreign bond and has no issues accessing dollars to repay the
maturing bond, Patience Oniha, director general of the Debt
Management Office (DMO), told Reuters.
Nigeria is facing its worst recession in 40 years brought on
by an oil price crash, which has hammered its currency, created
large financing needs and caused chronic dollar shortages,
frustrating businesses and individuals.
The government had planned a Eurobond issue early last year
to fund its budget deficit and refinance the $500 million
eurobond before it decided to defer the sale due to the turmoil
caused by the COVID-19 pandemic. The West African country held its last Eurobond sale in
2018, its sixth such issue, where it raised $2.86 billion.

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