Federal government has revealed over $900 million was raised from its first-ever domestic dollar-denominated bond issuance.
Gatekeepers News reports that minister of finance and coordinating minister of the economy, Wale Edun while speaking on the results of the issuance on Tuesday, said the bond saw an over 180 percent subscription.
Before this, federal government had on 20 August, offered its first $500 million FGN bond for subscription at $1,000 per unit to interested investors.
Edun said this shows the continued confidence of investors in Nigeria’s economic stability and growth prospects.
The minister noted that proceeds from the bond would be directed to key sectors of the economy as approved by President Bola Ahmed Tinubu.
According to him; the successful capital raise demonstrates the government’s dedication to expanding its funding sources and promoting economic growth.
Edun expressed confidence about Nigeria’s economic future, describing the bond issuance as a huge success.
He said, “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.”
Also, Director-general (DG) of Debt Management Office (DMO), Patience Oniha expressed gratitude to all parties involved in the transaction.
Africa Finance Corporation was the global coordinator, United Capital Plc acted as lead issuing house/coordinator.
Other issuing houses involved in the capital raise are Meristem Capital Limited, Stanbic IBTC Capital Limited, and Vetiva Advisory Services Limited.
The DG said, “We thank 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.”
She further revealed that DMO was very pleased with the remarkable outcome of the exercise, and diverse investors who subscribed to the bond, attested to the depth and increasing sophistication of the domestic fixed-income securities market.
