Nigeria has successfully secured $2.2 billion in its recent Eurobond auction, marking a crucial step in addressing its growing fiscal deficit. The government plans to utilize these funds to support the 2024 budget, which is currently facing challenges due to ongoing revenue shortfalls and increasing public expenditure. 

The auction attracted a total subscription of $8.8 billion, although only $2.2 billion was allocated. The distribution includes $700 million for a 6.5-year bond with a yield of 9.625 percent and a larger allocation of $1.5 billion for a 10-year bond priced at 10.375 percent. 

These bonds were issued under the Regulation S/144A framework, allowing access to both U.S. and international investors. The oversubscription reflects a growing investor confidence in Nigeria's economic potential to manage its rising debt levels. However, there remains a sense of caution, as indicators suggest that Nigeria's economy may be nearing 'junk status,' with its 10-year bond yielding significantly more than typical investment-grade bonds. 

The government has confirmed that the bonds will be listed on the main market of the London Stock Exchange, with the transaction anticipated to settle on December 9, 2024. Initial denominations will commence at $200,000, with subsequent increments of $1,000.