Nigeria’s maiden foreign-currency domestic bond recorded a subscription of $900 million, overshooting the initial offer size of $500 million.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, spoke on the results of the landmark sovereign bond yesterday.
Edun said the oversubscription of the $500 million further highlighted continuing investor confidence in Nigeria’s economic stability and growth.
According to him, the huge success of the first-ever domestic dollar bond has strengthened the government’s efforts at deepening economic growth and advancing financial inclusion.
He noted that the successful issuance underscored the government’s commitment to diversifying its sources of funding and bolstering economic growth despite current economic challenges.
“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,” he said.
Edun explained that the landmark bond issuance attracted a diverse range of investors, including Nigerians and non-Nigerians residing in the country, Nigerians in the diaspora, as well as qualified institutional investors.
He reiterated that the net proceeds from the bond would be directed towards critical sectors of the economy as approved by President Bola Ahmed Tinubu.
He affirmed that Nigeria’s economic trajectory remains bright as shown by key headlining economic indices, including the extremely successful issuance of the inaugural domestic foreign-currency-denominated bond.
According to him, the forthcoming listing of the dollar-denominated bond on the Nigerian Exchange (NGX) and FMDQ Securities Exchange will position Nigeria as a key player in deepening its capital markets and promoting financial inclusion.
Director General of Debt Management Office (DMO), Ms Patience Oniha, said the huge success of the $500 million bond was a pivotal step in Nigeria’s economic development.
She said DMO was very pleased with the remarkable outcome of the capital raising, noting that the over $900 million from diverse investors attested to the depth and increasing sophistication of the domestic fixed-income securities market.
She reaffirmed the Federal Government’s commitment to collaborating with investors and stakeholders to drive economic growth and development in the country.
Oniha commended all the parties involved in the transaction, noting that its success was made possible through the advisers’ expertise and guidance.
“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 said.