Nigeria raises over $900m in Domestic FGN US Dollar Bond
“The issuance of this inaugural domestic FGN US Dollar Bond highlights the continued faith investors have in Nigeria’s economy."
Nigeria’s efforts to deepen its capital market and diversify funding sources took a significant leap with the successful issuance of the inaugural Domestic Federal Government of Nigeria (FGN) US Dollar Bond.
In what is considered a landmark transaction, the Federal Government raised over $900 million from investors.
The bond, which was over 180 percent subscribed, marks a crucial step in broadening Nigeria’s funding avenues amid global economic headwinds. It reflects growing investor confidence in the nation’s economic outlook.
The Debt Management Office (DMO), which handled the issuance on behalf of the Federal Government, announced that the bond had been priced at par with a semi-annual coupon rate of 9.75 percent and a five-year tenor.
This issuance is the first under the Domestic FGN US Dollar Bond Programme, established pursuant to the 2023 Presidential Executive Order No. 16 (Foreign Currency Denominated Financial Instrument Local Issuance Programme and Related Matters Order).
According to officials, proceeds from the bond will be deployed to critical sectors of the economy, subject to legislative approval, as part of ongoing efforts to sustain growth and address key infrastructure gaps.
Investors participating in the bond cut across a broad spectrum, including Nigerian residents, non-residents, Nigerians in the diaspora, and qualified institutional investors, underscoring the broad-based appeal of the instrument.
The bond will be listed on the Nigerian Exchange Limited (NGX) and FMDQ Securities Exchange Limited, increasing its accessibility and tradability within the domestic financial ecosystem.
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.
