Nigeria makes history with $900M US Dollar bond issuance

September 11, 2024

By Samuel Ogunsona

The Federal Government of Nigeria has successfully raised over $900 million from its inaugural Domestic FGN US Dollar Bond issuance, marking a significant milestone in the country’s economic development.

The Debt Management Office (DMO) hailed the achievement as a pivotal step towards strengthening the economy and advancing financial inclusion.

The bond issuance, priced at par with a 9.75% coupon over five years, saw an impressive over 180% subscription, reflecting investors’ continued confidence in Nigeria’s economic stability and growth prospects.

The Minister of Finance, Mr. Wale Edun, noted that the bond attracted a diverse range of investors, including Nigerians, non-Nigerians, and qualified institutional investors.

“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 minister said.

The proceeds from the bond will be directed towards critical sectors of the economy, as approved by President Bola Ahmed Tinubu.

Edun emphasized that the successful issuance demonstrates the government’s commitment to diversifying its funding sources and bolstering economic growth despite current challenges. 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.

Director General of the DMO, Ms. Patience Oniha, also expressed gratitude to all the parties involved in the transaction. She praised all parties 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.