The government’s efforts to borrow through Eurobond was oversubscribed by about $11 billion, but only $3 billion was accessed.
Central Bank of Nigeria (CBN) Governor Godwin Emefiele did not say why the country could only access about one-third of the bond.
Answering reporters’ questions at the end of the Monetary Policy Committee (MPC) meeting in Abuja yesterday, Emefiele said: “The information that I got was that the bond was oversubscribed to the tune of about $11 billion. However, we could only access $3 billion in two tranches of 15 and 30 years. One is at 6.5%; the other about 7.38%.”
The implication of the Eurobond over subscription and government’s ability to access $3 billion of the bonds, Ememfiele said, is “that investor confidence in the Nigerian economy continues to be strong based on most of the macroeconomic indices and also supported by the decisions of both the Monetary and Fiscal policies. There is confidence by the investor community about what the government is doing and it delights us that the level of confidence has improved and hence you’ve seen that the activities of the Monetary and Fiscal authorities have resulted in the country exiting recession.”