In a historic bond issuance, Nigeria’s $500 million domestic FGN US Dollar Bond has garnered $900 million in subscriptions, reflecting investor confidence in the nation’s economic potential. Speaking on Tuesday, Nigeria’s Minister of Finance, Wale Edun, highlighted that the oversubscription signals strong faith in the country’s economic stability and future growth prospects.
“The issuance of this inaugural domestic FGN US Dollar Bond demonstrates the continued trust investors have in Nigeria’s economy,” Edun remarked.
The bond attracted a diverse range of investors, including Nigerians both locally and internationally, as well as institutional players. The funds raised will be directed toward vital economic sectors, with the allocation approved by President Bola Ahmed Tinubu.
This first tranche of the $500 million bond, which carries a five-year maturity and a 9.75% coupon, is part of a broader $2 billion bond program registered with the Securities and Exchange Commission. The bond’s structure allows the government to absorb additional subscriptions, up to the $2 billion program limit.
Patience Oniha, Director-General of the Debt Management Office, hailed the bond’s success as a significant milestone for Nigeria’s economic growth. She emphasized that the $900 million raised from a wide range of investors highlights the increasing sophistication of Nigeria’s domestic fixed-income market.
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