The Nigerian Government officially issued a $500 million domestic bond, which opened for subscription on August 19, 2024.
The bond, one of the Government’s many financing initiatives, carries a 9.75% per annum interest rate and will mature in 2029. The auction will stay open until August 30, 2024.
The specified settlement date for investors to receive confirmation of their purchases and begin accruing interest is September 6, 2024.
This initiative marks an important milestone in Nigeria’s financial strategy, offering domestic and international investors investment opportunities.
The bond is designed as a five-year investment, with interest payments made twice a year.
The initial minimum investment is $10,000 (10 units), and investors can buy units starting at a minimum of $1,000 each. Additional investments can be made in increments of $1,000.
The bond will be redeemed through a lump sum payment at the end of the five-year period, ensuring that investors will receive their full principal upon maturity.
Minister of Finance, Wale Edun, previously announced plans to launch the bond issuance to stimulate the Nigerian economy.
Additionally, Patience Oniha, the Director General of the Debt Management Office (DMO), stated that the settlement for the $500 million domestic dollar bond auction would occur ten days after the auction date.