FG's Dollar Bond Draws $900m in Investor Interest

Wale Edun, Minister of Finance 

Nigeria's Dollar Bond Oversubscribed by $900m

“This accomplishment highlights the government's commitment to exploring alternative funding avenues...”

Nigeria's $500m domestic FGN US Dollar Bond issuance succeeds, attracting $900m in investments, marking a significant milestone in Nigeria's economic progress and showcasing the growing sophistication of its domestic fixed-income market.

Nigeria's pioneering foreign-currency domestic bond has garnered a remarkable $900 million in investor interest, marking a significant milestone in the country's economic landscape.

Finance Minister Wale Edun revealed the impressive subscription figures on September 10, attributing the oversubscription to investors' growing confidence in Nigeria's economic resilience and growth potential.

Edun hailed the successful bond launch as a demonstration of the government's effective strategy to stimulate economic expansion, promote financial inclusion, and foster a more robust financial ecosystem.

“This accomplishment highlights the government's commitment to exploring alternative funding avenues, demonstrating its resilience in navigating the current economic landscape.”

“The issuance of this inaugural domestic FGN US Dollar Bond highlights the continued faith investors have in Nigeria's economy,” Edun said.

The bond drew a broad range of investors, comprising domestic and diaspora Nigerians, as well as institutional investors, demonstrating a strong collective interest in the country's economic development. The proceeds from the bond will be channeled into strategic sectors of the economy, in line with President Bola Tinubu's directives.

The Nigerian government has successfully launched a $500 million domestic bond, maturing in five years with a 9.75% interest rate, marking the initial phase of a $2 billion bond program approved by the Securities and Exchange Commission. This innovative bond structure enables the government to capitalize on oversubscriptions, potentially reaching the full $2 billion allocation.

According to Patience Oniha, Director-General of the Debt Management Office, this bond issuance represents a landmark achievement in Nigeria's economic development. The impressive $900 million investment from a diverse range of investors showcases the growing complexity and maturity of Nigeria's domestic fixed-income market, signaling a significant step forward in the country's economic evolution.

Oniha expressed her gratitude to the entire team involved in the bond issuance, acknowledging that their specialized knowledge and synergistic approach were instrumental in achieving this landmark outcome.