The Federal Government of Nigeria has launched a Series I Domestic USD Bond, aiming to raise at least $500 million from both domestic and international investors. This bond issuance is part of a broader strategy to raise up to $2 billion, with the potential to expand depending on investor interest.
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- FG issue $500m denominated bonds, target 200% subscription rate.
The bond has a five-year maturity, offering investors a medium-term investment with semi-annual interest payments.
The coupon rate will be benchmarked against yields on comparable FGN Eurobonds, ensuring competitive returns for investors. The bond will be repaid in full in US dollars at maturity, providing a secure investment for those holding foreign currency.
- This bond is open to a broad range of investors, including Nigerians residing domestically and abroad, as well as non-Nigerians living in Nigeria and Qualified Institutional Investors. The initiative is part of the Nigerian government’s broader efforts to attract foreign currency savings from Nigerians abroad and to strengthen its financial position amid challenging economic conditions.
The auction comes at a time when Nigeria’s existing Eurobonds are among the worst performers in a Bloomberg index of emerging and frontier sovereign debt, highlighting the government’s need to demonstrate credibility and confidence in its macroeconomic reforms to attract investors.
