Nigeria’s first-ever foreign-currency domestic bond has secured $900m in subscriptions.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, revealed this while discussing the results of the historic bond issuance on Tuesday.
He noted that the oversubscription reflects investor confidence in Nigeria’s economic stability and potential for growth.
Edun explained that the successful issuance of the domestic dollar bond marks a significant step in the government’s efforts to deepen economic growth and promote financial inclusion.
He added that this achievement demonstrates the government’s commitment to diversifying funding sources amid 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.
The $500 million domestic FGN US Dollar Bond, with a five-year maturity and a 9.75 per cent coupon, is the first tranche of a $2bn bond programme registered with the Securities and Exchange Commission. The structure of the bond allows the government to absorb oversubscriptions up to the full $2bn programme limit.
The Director-General of the Debt Management Office, Patience Oniha, described the bond’s success as a pivotal moment for Nigeria’s economic development. She noted that the $900m raised from diverse investors underscores the growing sophistication of Nigeria’s domestic fixed-income market.
Oniha praised the efforts of all parties involved in the bond issuance, crediting their expertise for the transaction’s success.
