September 11, (THEWILL) – Nigeria has raised over $900 million from its first-ever Domestic Federal Government of Nigeria (FGN) US Dollar Bond issuance.
The bond is the first under the Domestic FGN US Dollar Bond Programme, established according to Presidential Executive Order No. 16 of 2023 (Foreign Currency Denominated Financial Instrument Local Issuance Programme and Related Matters Order).
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.
The maiden dollar bond issuance attracted diverse investors, including Nigerians and non-Nigerians residing in the country, Nigerians in the diaspora, and qualified institutional investors.
In a statement, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the bond issuance saw an impressive over 180% subscription, highlighting investors’ continued confidence in Nigeria’s economic stability and growth prospects.
The bond will be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited, positioning Nigeria as a key player in deepening its capital markets and promoting financial inclusion.
Edun said proceeds from the bond will be directed towards critical sectors of the economy as approved by President Bola Tinubu.
He reaffirmed the administration’s focus on economic reforms, describing the bond as a testament to the Federal Government’s resolve to explore innovative funding solutions while promoting financial inclusion.
“The issuance of this inaugural Domestic FGN US Dollar Bond demonstrates that investors, as well as Nigerians, continue to have faith in the country’s economy. The 180 percent subscription and the broad participation in the bond reflect confidence in our economy”, he said.
The DMO described the achievement as a pivotal step in Nigeria’s economic development.
DMO Director General, Ms Patience Oniha, expressed gratitude to all the parties involved in the transaction, including Africa Finance Corporation as Global Coordinator, United Capital Plc as Lead Issuing House/Coordinator, Meristem Capital Limited, Stanbic IBTC Capital Limited, and Vetiva Advisory Services Limited as Issuing Houses. Our legal partners, Olaniwun Ajayi LP and G. Elias, and financial advisers, Constant Capital Markets and Securities Limited and Iron Global Markets Limited, for their critical roles in structuring and executing the bond.
“This transaction was made possible through the expertise and guidance of our advisers. We also appreciate the continued support of the Nigerian public and our institutional partners who contributed to the successful completion of this historic issuance”, Oniha said.
She added that over $900 million, which represented an over 180% subscription when compared to the $500 million that was offered, as well as the diverse investors who subscribed to the Bond, attested to the depth and increasing sophistication of the domestic fixed income securities market.
Oniha reaffirmed the Federal Government’s commitment to collaborating with investors and stakeholders to drive economic growth and development in the country.
