The Federal Government has released $500 million to redeem matured January 2021 Eurobond.
The Debt Management Office (DMO) confirmed that “Nigeria’s 6.75% US$500 million January 2021 Eurobond which matures on January 28, 2021 will be redeemed. For this purpose, funds have been made available”.
The Debt Management Office in a statement on Thursday said the money has been released “to the Fiscal Agent to repay the principal sum of USD500 million and final Interest payment due on the Eurobond”.
According to the DMO, “by this development, Nigeria continues to demonstrate in practical terms, its commitment towards honoring all its debt service obligations as and when due”.
The 6.75% US$500 million January 2021 Eurobond which was issued in January 2011 was Nigeria’s first foray into the International Capital Market (ICM)” the DMO said.
The issuance of the Eurobond enabled Nigeria to diversify its sources of funding as it successfully raised a total of US$10,668.35 million from the ICM thereafter, making a total of US$11,168.35 million to finance the implementation of the Federal Budgets.
Raising funds from the Eurobond, the DMO explained has also contributed to Nigeria’s External Reserves.
In addition, “a number of private sector operators, notably Nigerian Banks, have raised US Dollar funds from the ICM following Nigeria’s debut Eurobond in January 2011” the DMO said.