August 16, (THEWILL) – The federal government has launched a $500 million FX-denominated domestic bond.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who unveiled the Series I USD500 million domestic FGN US dollar bond on Thursday, in Lagos, said the launch was a bold step towards economic transformation poised to attract both local and international investors.
A press statement issued by Mohammed Manga, Director, Information and Public Relations at the Ministry, quoted Edun as saying, “This historic initiative is aimed at raising a minimum of $500 million from both local and international investors, marking a significant step in Nigeria’s ongoing economic reform and development efforts.”
The Minister said the bond issuance, which is set to leverage the Nigerian financial system, including the Securities and Exchange Commission, the banking system, and investment bankers, represents a critical effort to attract foreign currency held by Nigerians abroad, as well as other international investors who believe in the macroeconomic reform initiatives spearheaded by President Bola Ahmed Tinubu.
Edun emphasised that the financial market thrives on creativity and innovation and that it is essential to encourage investors to participate in this strategic opportunity.
Highlighting the positive outcomes already being seen from the current economic policies, Edun noted that government revenue and expenditure have been significantly revamped and the trade balance is improving.
Meanwhile, the Managing Director of Investment Banking at United Capital Group Dr Gbadebo Adenrele, said Thursday, at a hybrid roadshow with investors hosted by the Debt Management Office (DMO), that the $500m dollar-denominated domestic bond will be issued on Monday.
“The auction will open next week on Monday. Next week Monday, we will have that open, and the details of that will be communicated to the market.
“One of the key aspects of this bond issuance is that it will be listed on platforms such as the Nigerian Exchange and FMDQ, making it accessible to a variety of investors.
“The principal will be repaid after five years, with interest payments made every six months. This structured repayment schedule is designed to provide confidence to investors:, he said.
On her part, Patience Oniha, director-general of the DMO, said the settlement date for the domestic dollar bond auction will likely be 10 days after the auction date.
