Revealed! Investors over subscribed Nigeria's foreign-currency domestic bond

• A total of $900 million was subscribed for Nigeria's first-ever domestic bond denominated in a foreign currency
• The oversubscription, according to Nigeria's finance minister, reflects investor confidence in the country's growth prospects
• He added that this achievement demonstrates the government's commitment to growing its revenue streams despite challenges

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Subscriptions for Nigeria's first-ever domestic bond denominated in a foreign currency totalled $900 million.

FG said the oversubscription shows investor confidence in Nigeria's economic stability and growth prospects. Photo Credit: FG, Contributor
Source: Getty Images

This was disclosed by Wale Edun, the Coordinating Minister of the Economy and Minister of Finance, on Tuesday during a discussion on the outcomes of the historic bond offering.

He pointed out that investor trust in Nigeria's economic stability and growth potential is reflected in the oversubscription.

Edun clarified that the government's efforts to advance financial inclusion and accelerate economic growth had advanced significantly with the successful issuing of the domestic dollar bond.

He added that this accomplishment shows the government's dedication to expanding its sources of revenue in the face of economic difficulties.

The Punch reported that the bond drew interest from a broad spectrum of investors, including institutional investors and Nigerians living overseas. President Bola Ahmed Tinubu has approved the allocation of the bond's revenues to key economic sectors.

The first tranche of a $2 billion bond program registered with the Securities and Exchange Commission is the $500 million domestic FGN US Dollar Bond, which has a five-year maturity and a 9.75% coupon. The bond's structure permits the government to take oversubscriptions up to the entire $2 billion program cap.

The bond's performance, according to Patience Oniha, Director-General of the Debt Management Office, was a turning point in Nigeria's economic development. The $900 million raised from a variety of investors, she said, highlights how sophisticated Nigeria's local fixed-income market is becoming.

Oniha gave gratitude to the knowledge of all those engaged in the bond issuance for the transaction's success and commended their efforts.

FG Invites Nigerians to Invest in Savings Bonds at Just N1,000

Legit.ng reported that the Debt Management Office (DMO) has unveiled a new opportunity for subscription to two Federal Government of Nigeria (FGN) savings bonds, priced at N1,000 per unit.

The DMO disclosed this in a statement released on Monday, August 7, 2024, in Abuja.

These savings bonds are designed specifically for retail investors, ensuring a quarterly interest payout and full repayment of the principal upon maturity.

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Source: Legit.ng