Nigeria is looking to join the Ivory Coast in returning to the Eurobond markets as it seeks to raise $1.5 billion according to Bloomberg.
Why is this important: Nigeria is facing a dollar scarcity problem with almost $2 billion of Fx backlog settled recently. The dollar shortage is putting pressure on the naira which has experienced significant devaluation over the last year. Nigeria's minister of finance Wale Edun revealed the country's fundraising intentions in his Davos interview with Bloomberg TV. The new Eurobond issue will used to provide budgetary support as the country continues its economic reform.
The bottom line: Nigeria's last entry to the Eurobond markets was in March 2022, when a seven-year $1.25 billion Eurobond was raised. With the prospect of global interest rates falling most African countries like Nigeria are looking for the perfect window to tap the international debt markets for favourable funding.