Wale Edun: FG raised over $900m through domestic dollar-denominated bonds

The federal government says over $900 million was raised from its first-ever domestic dollar-denominated bond issuance.

Speaking on the results of the issuance on Tuesday, Wale Edun, minister of finance and coordinating minister of the economy, said the bond saw an over 180 percent subscription.

On August 20, the federal government offered its first $500 million FGN bond for subscription at $1,000 per unit to interested investors.

According to the minister, this shows the continued confidence of investors in Nigeria’s economic stability and growth prospects. 

He said the proceeds from the bond would be directed to key sectors of the economy as approved by President Bola Tinubu.

According to the minister, the successful capital raise demonstrates the government’s dedication to expanding its funding sources and promoting economic growth.

Edun said he was confident about Nigeria’s economic future, describing the bond issuance as a huge success.

“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,” the minister said.

On her part, Patience Oniha, director-general (DG) of the Debt Management Office (DMO), also expressed gratitude to all the parties involved in the transaction. 

Africa Finance Corporation was the global coordinator, United Capital Plc acted as the 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.

“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,” she said.

“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.”

Speaking further, she said DMO was very pleased with the remarkable outcome of the exercise. 

Oniha added that diverse investors who subscribed to the bond, attested to the depth and increasing sophistication of the domestic fixed income securities market.