Nigeria has achieved a milestone with its inaugural foreign-currency domestic bond, which has garnered $900 million in subscriptions.
The Minister of Finance and Coordinating Minister of the
Economy, Wale Edun, shared this information while presenting the outcomes of
the landmark bond issuance on Tuesday.
He emphasized that the oversubscription is indicative of
investor confidence in Nigeria's economic stability and growth potential.
Edun further elaborated that the successful launch of the
domestic dollar bond represents a crucial advancement in the government's
strategy to enhance economic growth and foster financial inclusion.
He remarked that this accomplishment reflects the
government's dedication to diversifying funding sources in the face of economic
challenges.
"The issuance of this first domestic FGN US Dollar Bond
underscores the enduring trust investors have in Nigeria's economy," Edun
stated.
The bond attracted a diverse array of investors, including
both local and international Nigerians, as well as institutional investors.
The funds raised will be directed towards essential economic
sectors, as sanctioned by President Bola Ahmed Tinubu.
The $500 million domestic FGN US Dollar Bond, which has a
five-year maturity and a 9.75 percent coupon, is the initial tranche of a $2
billion bond program registered with the Securities and Exchange Commission.
The bond's structure permits the government to accommodate
oversubscriptions up to the total $2 billion program limit.
Patience Oniha, the Director-General of the Debt Management
Office, characterized the bond's success as a critical juncture for Nigeria's
economic progress.
She highlighted that the $900 million raised from a variety
of investors illustrates the increasing sophistication of Nigeria's domestic
fixed-income market.
Oniha commended the contributions of all parties involved in
the bond issuance, attributing the transaction's success to their expertise.