Nigeria’s debut foreign-currency domestic bond saw a subscription of $900 million, exceeding the initial offer size of $500 million.
Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, commented on yesterday’s outcome of the historical sovereign bond. He emphasised that the oversubscription of $500 million showcased ongoing investor confidence in Nigeria’s economic stability and growth.
“The debut domestic FGN US Dollar Bond issuance demonstrates the continued faith that investors and Nigerians have in the country’s economy.”
He pointed out that the successful issuance underscored the government’s dedication to diversifying its funding sources and enhancing economic growth despite prevailing economic hurdles.
He noted that the landmark bond issuance attracted a diverse range of investors, including Nigerian residents, non-Nigerians living in the country, Nigerians living abroad, and qualified institutional investors.
Mr Edun affirmed that Nigeria’s economic outlook remains positive, as evidenced by key economic indicators, including the successful issuing of the inaugural domestic foreign-currency-denominated bond.
![](http://newscentral.africa/wp-content/uploads/Wale-Edun-1.jpg)
The Series I $500 million Domestic FGN US Dollar Bond, a five-year bond with a coupon of 9.75 per cent, represents the initial segment of the $2 billion bond registered by the Federal Government with the Securities and Exchange Commission (SEC).
The bond’s structure enables the government to accommodate oversubscriptions within the program’s total size of $2 billion. The bond was issued in accordance with Presidential Executive Order No. 16 of 2023.
Ms Patience Oniha, the Director General of the Debt Management Office (DMO), stated that the profound success of the $500 million bond was a pivotal advancement in Nigeria’s economic growth.
Market sources suggested that the success of the $500 million bond would create new opportunities for capital raising for other government tiers and companies, with the inaugural sovereign bond serving as a benchmark for subsequent issuances.