Nigeria has officially launched the sale of $2.25 billion worth of Eurobonds on Wednesday, according to the bookrunner Chapel Hill Denham.
The government plans to use the funds to finance its budget deficit and support economic stability.
This move comes shortly after U.S. President Donald Trump threatened possible military action against Nigeria if the government fails to stop attacks on Christians.
Following the warning, Nigeria’s long-term bonds briefly dropped in value — with the 2051 bond falling about 0.5 cents before recovering slightly.
Despite the political tension, Nigeria went ahead with the bond sale, showing confidence in its economic and fiscal strategy.
The Eurobond was issued in two parts (tranches) — one for 10 years at 9.125% interest, and another for 20 years at 9.625%.
Recently, several African nations — including Kenya, Angola, and the Republic of Congo — have returned to the Eurobond market to benefit from lower global interest rates and strong investor demand.
In fact, total emerging market debt sales have reached a record high this year.