Nigeria’s Finance Minister and Coordinating Minister of the Economy, Wale Edun, announced that the country’s first-ever foreign-currency domestic bond has attracted $900 million in subscriptions, surpassing expectations.
Speaking on the outcome of the bond issuance on Tuesday, Edun emphasized that this oversubscription shows growing confidence in Nigeria’s economic stability and its potential for growth.
“The success of this inaugural domestic US Dollar Bond is a testament to the trust investors continue to place in Nigeria’s economy,” Edun remarked.
The bond saw interest from a diverse pool of investors, including Nigerians at home and abroad, as well as institutional investors. The funds raised will be directed towards key economic sectors, in line with the approval of President Bola Ahmed Tinubu.
The $500 million bond, which comes with a five-year maturity and a 9.75% interest rate, is the first part of a larger $2 billion bond program approved by the Securities and Exchange Commission. This structure enables the government to take in up to the full $2 billion in case of oversubscriptions.
Patience Oniha, Director-General of the Debt Management Office, described the bond’s success as a significant step in Nigeria’s economic development. She highlighted that the $900 million secured from a variety of investors showcases the increasing maturity and sophistication of Nigeria’s domestic fixed-income market.
