Debt Management Office has said that Nigeria’s 6.75 per cent $500m January 2021 Eurobond, which matured on Thursday, will be redeemed.

It disclosed this on Thursday in a press release titled ‘Nigeria redeems $500m’.

DMO had earlier disclosed that Nigeria’s eurbond debt profile was $10.87bn as of the end of September 2020, most of which had future maturing dates.

This leaves an outstanding of about $10.37bn after the redemption of $500m.

For this purpose, it added, funds had been made available by the Federal Government to the fiscal agent to repay the principal sum of $500m and final interest payment due on the Eurobond.

By this development, Nigeria continued to demonstrate in practical terms, its commitment towards honouring all its debt service obligations as and when due, it stated.

DMO said the 6.75 per cent $500m January 2021 Eurobond issued in January 2011 was Nigeria’s first foray into the International Capital Market.

It stated that the issuance of the Eurobond enabled Nigeria to diversify its sources of funding as it successfully raised a total of $10.668bn from the ICM thereafter, making a total of $11.168bn to finance the implementation of federal budgets.

This was in addition to contributing to Nigeria’s external reserves, it stated.

Equally important, it added, a number of private sector operators, notably Nigerian banks, had raised dollar funds from the ICM following Nigeria’s debut Eurobond in January 2011.

Punch