The Nigerian government has unveiled its Series I Domestic dollar-dominated Bond with a plan to raise at least $500 million from local and international investors.
According to a recent Auction circular, the government targets $1 billion in subscriptions in this round of auction.
Meanwhile, this auction comes at a time when five of Nigeria’s Eurobonds were ranked among the worst performers in the Bloomberg index of emerging and frontier sovereign debt.
A detailed breakdown of the bond program showed that it has a total size of up to $2.0 billion, which can be upsized depending on the issuer’s discretion.
The bond is five-year tenured, offering a medium-term investment opportunity for investors looking for stable returns.
Accordingly, it was also stated that the bond’s coupon rate is benchmarked to comparable FGN Eurobonds yields, ensuring competitive returns that align with international market standards.
Interest payments will be made semi-annually, providing regular income streams to investors and enhancing the bond’s appeal.
The bond offers bullet repayment at maturity in US dollars, ensuring full repayment of the principal amount at the end of the five-year term.
Recall that Wale Edun, the Minister of Finance had hinted on the plan to unveil the $500 million in domestic foreign currency-denominated bonds two weeks ago
Nigerian govt targets $1bn subscriptions from $500m Dollar-dominated bond