Nigeria’s inaugural foreign-currency domestic bond has received an overwhelming response from investors, with a total subscription of $900m, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced on Tuesday.
Edun attributed the oversubscription to investor confidence in Nigeria’s economic stability and potential for growth, noting 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.
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 bond attracted a wide range of investors, including Nigerians both locally and abroad, as well as institutional investors.
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The proceeds from the bond will be allocated to critical economic sectors, as approved by President Bola Ahmed Tinubu.
The Director-General of the Debt Management Office, Patience Oniha, described the bond’s success as a pivotal moment for Nigeria’s economic development, noting that the $900m raised from diverse investors underscores the growing sophistication of Nigeria’s domestic fixed-income market.
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