Nigeria has achieved a significant milestone with the successful issuance of its first-ever foreign-currency domestic bond, generating an impressive $900 million in subscriptions.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, announced the successful results of this groundbreaking bond issuance during a press briefing on Tuesday. He highlighted that the oversubscription is a testament to investor confidence in Nigeria’s economic stability and growth potential.
Edun emphasized that this milestone in domestic dollar bond issuance is crucial for the government’s plans to stimulate economic growth and enhance financial inclusion. He remarked on the government’s dedication to diversifying funding sources amid ongoing economic challenges.
“This inaugural domestic FGN US Dollar Bond showcases the enduring faith that investors hold in Nigeria’s economy,” Edun stated.
The bond attracted a broad spectrum of investors, including both local and international Nigerians, as well as institutional investors. The funds raised will be directed towards vital economic sectors, as outlined by President Bola Ahmed Tinubu.
The $500 million domestic FGN US Dollar Bond, which features a five-year maturity and a 9.75 percent coupon, represents the first tranche of a $2 billion bond program registered with regulatory bodies. This structure enables the government to accommodate oversubscriptions, reaching the full $2 billion program limit.
Patience Oniha, Director-General of the Debt Management Office, called the bond’s triumph a turning point for Nigeria’s economic advancement. She noted that the $900 million raised from a diverse investor base highlights the increasing sophistication of Nigeria’s domestic fixed-income market.
Oniha commended all parties involved in the bond issuance for their expertise, which contributed to the success of this landmark transaction.
