Edun: FG USD Bond Attracted $900m Subscription

The first-ever foreign-currency domestic bond issued by Nigeria has garnered a significant response, with $900 million in subscriptions secured.

This milestone was announced on Tuesday by Wale Edun, Finance Minister and Coordinating Minister of the Economy.

Edun highlighted that the oversubscription of the bond signifies strong investor confidence in Nigeria’s economic stability and potential for growth. The issuance of the domestic dollar bond is a key step in the government’s strategy to enhance economic growth and promote financial inclusion, demonstrating its commitment to diversifying funding sources amid ongoing economic challenges.

The inaugural domestic FGN US Dollar Bond, amounting to $500 million with a five-year maturity and a 9.75 percent coupon rate, is the first part of a $2 billion bond program registered with the Securities and Exchange Commission. The bond’s structure allows for the absorption of oversubscriptions up to the full $2 billion limit, reflecting the robust demand and investor trust.

The bond attracted a diverse range of investors, including both local and international Nigerian investors as well as institutional investors. The proceeds from this bond will be allocated to critical economic sectors as approved by President Bola Ahmed Tinubu.

The Director-General of the Debt Management Office Patience Oniha described the bond’s success as a significant development for Nigeria’s economic progress. She emphasized that the $900 million raised from a variety of investors highlights the growing sophistication and maturity of Nigeria’s domestic fixed-income market.

Oniha commended the efforts of all parties involved, noting their expertise was crucial to the successful completion of the bond issuance.