The Federal Government yesterday expanded the frontiers of the nation’s economy with the inauguration of foreign-currency-denominated domestic sovereign bonds.
This will open up a new market segment for governments and companies.
Coordinating Minister of the Economy, Mr. Wale Edun, who inaugurated the bond, highlighted benefits derivable from it.
Experts said it would greatly lift investment and make funds available for capital projects.
The Series I $500 million Domestic FGN US Dollar Bond will open for auction on Monday.
This plan, the first in the country’s financial milieu, is a five-year bond with bi-annual interest payment in currency of issuance, and principal payment at the expiration of the tenor.
The bond will be listed on the Nigerian Exchange (NGX) and FMDQ Securities Exchange, providing liquidity and accessibility to a broad range of investors.
There are indications that the government could raise as much as $2 billion, the total size of the approved scalable bond issuance programme.
Nigeria’s sovereign bonds have seen huge investor appetite on the back of reforms by the Tinubu Administration, widely acclaimed for its investor-friendly stance.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, while unveiling the $500 million bond yesterday in Lagos, said it was a bold step towards economic transformation which will further attract local and international investors.
