Federal Govt dollar bond attracts $900m subscription
proceeds for important business initiatives, according to Edun
The $900 million subscription for Nigeria's first domestic bond denominated in a foreign currency exceeded the $500 million initial offer amount.
Yesterday, Mr. Wale Edun, the Coordinating Minister of the Economy and Minister of Finance, gave a speech regarding the outcomes of the historic sovereign bond.
According to him, investor trust in Nigeria's economic stability and prosperity is further demonstrated by the $500 million oversubscription.
He claims that the government's initiatives to promote financial inclusion and deepen economic growth have been bolstered by the enormous success of the first-ever domestic dollar bond.
Despite the current economic challenges, he stated that the government's commitment to diversifying its funding sources and promoting economic growth is demonstrated by the successful issuance.
The release of this first domestic FGNUS Dollar Bond demonstrates that investors, as well as Nigerians, continue to have faith in the country’s economy.” , according to Edun
According to him, the historic bond offering drew in a wide spectrum of investors, including qualified institutional investors, Nigerians living abroad, and Nigerians who were not residents of the nation.
He restated that President Bola Ahmed Tinubu's approval will guide the bond's net proceeds into vital economic sectors.
The first domestic bond issued in Nigeria denominated in a foreign currency was issued with great success, and he confirmed that this indicates that the country's economic trajectory is still positive.
He claims that Nigeria will be positioned as a major participant in expanding its capital markets and advancing financial inclusion as a result of the upcoming listing of the dollar-denominated bond on the FMDQ Securities Exchange and the Nigerian Exchange (NGX).
First tranche of $2 billion bond registered with the Securities and Exchange Commission (SEC) by the Federal Government is the $500 million Series I Domestic FGN US Dollar Bond, a five-year bond with a coupon of 9.75 percent.
Because of the bond's structure, the government is able to take oversubscriptions up to the $2 billion program cap.
The bond was issued in response to Executive Order No. 16 of the President of 2023.
According to Ms. Patience Oniha, Director General of the Debt Management Office (DMO), the $500 million bond's enormous success was a crucial step in Nigeria's economic progress.
The impressive result of the capital raising, she added, thrilled DMO, noting that the over $900 million from various investors attested to to the depth and increasing sophistication of the domestic fixed-income securities market.
In order to promote economic growth and development in the nation, she reiterated the Federal Government's commitment to working with stakeholders and investors.
While praising each party involved in the deal, Oniha pointed out that the advisers' knowledge and direction were crucial to its success.
The Nigerian public's ongoing support as well as those of our institutional partners, she noted, "were important in making this historic issuance a success."
The Nation's exclusive revelations on the unique bond issue's success were substantiated by the offer results announced yesterday.
According to market sources, other governmental and corporate levels would be able to raise funds through the $500 million bond's performance, with the first sovereign bond acting as a model for future issues.
