Nigeria’s first-ever foreign-currency domestic bond has received subscriptions totaling $900 million. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced this while discussing the results of the historic bond issuance on Tuesday.
He pointed out that the over subscription reflects investors’ faith in Nigeria’s economic stability and potential for growth. He also highlighted that the successful issuance of the domestic dollar bond marks a major step forward in the government’s plan to boost economic growth and ensure wider access to financial services. He emphasized that this achievement demonstrates the government’s commitment to exploring different funding options to address economic challenges.
“The issuance of this inaugural domestic FGN US Dollar Bond highlights the continued faith investors have in Nigeria’s economy,” Edun said.
The bond attracted a wide range of investors, including Nigerians both locally and abroad, as well as institutional investors. The proceeds from the bond will be allocated to critical economic sectors, as approved by President Bola Ahmed Tinubu.
With a five-year maturity and a 9.75 per cent interest rate, the $500 million domestic FGN US Dollar Bond is the initial offering of a $2 billion bond program registered with the Securities and Exchange Commission. The bond’s structure permits the government to accept additional subscriptions up to the full $2 billion program limit.
The Director-General of the Debt Management Office, Patience Oniha, viewed the bond’s success as a significant turning point for Nigeria’s economic development. She emphasized that the $900 million raised from a wide range of investors highlights the increasing maturity of Nigeria’s domestic fixed-income market.
Oniha commended the efforts of all involved in the bond issuance, attributing their expertise to the transaction’s success.
This article was written by Tamaraebiju Jide, a student at Elizade University
