Nigeria Sells $2.5 Billion Eurobonds to Replace Naira Debt

Yield was 7.1% on 12-year tranche, 7.7% for 20-year notes
Finance ministry says order book in excess of $11.5 billion

A gas station attendant displays a large bundle of naira banknotes after selling fuel to a customer in Port Harcourt, Nigeria, on Friday, Jan. 15, 2016. With his security forces engaged in fighting Boko Haram's Islamist insurgency in the north, President Muhammadu Buhari can't afford renewed rebellion in the delta.Photographer: George Osodi/Bloomberg

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By Paul Wallace and David Malingha

February 15, 2018 at 4:54 PM UTC

Updated on

February 16, 2018 at 11:49 AM UTC

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Nigeria sold $2.5 billion of Eurobonds as it sought to lower funding costs by using the notes to refinance higher-yielding naira debt.

Africa’s biggest economy on Thursday issued $1.25 billion of 12-year securities with a yield of 7.14 percent and a separate 20-year tranche, also $1.25 billion, at 7.7 percent, the finance ministry said on Twitter. Investors placed more than $11.5 billion of orders, according to the ministry.