The Federal Government of Nigeria (FGN) has introduced its first-ever $500 million Domestic US Dollar Bond, offering investors an attractive 9.75% interest rate. The five-year bond, which officially opened for subscription yesterday, has generated significant interest due to its competitive yield and secure investment framework.
According to the guidelines for the offer, investors will receive bi-annual interest payments in U.S. dollars, making it a compelling option for those seeking steady returns in foreign currency. The bond issuance is part of the government’s broader strategy to diversify its funding sources and attract foreign exchange inflows into the economy.
The offer documents outline strict guidelines for participation, emphasizing the importance of transparency and regulatory compliance. Investors are required to make all payments through designated bank accounts via electronic transfers, with cash deposits strictly prohibited unless they have been in a domiciliary account for at least 30 days before the offer date. Additionally, subscribers must fulfill all Know-Your-Customer (KYC) requirements to ensure the legitimacy of their investments.
The bond will be listed on the Nigerian Exchange (NGX) and the FMDQ Securities Exchange, enhancing its liquidity and providing investors with easy access to secondary market trading. Market analysts have noted that the bond’s 9.75% coupon rate is highly attractive, especially in the current economic climate, and is likely to appeal to both domestic and international investors.
This domestic issuance marks a significant milestone for Nigeria’s capital market, as it provides a new avenue for investors seeking dollar-denominated assets within the country. The successful subscription to this bond could pave the way for future issuances, further strengthening Nigeria’s financial market and expanding investment opportunities for both local and foreign participants.
