The Federal Government has disclosed plans to issue its dollar-denominated domestic bond next week Monday, to raise $500 million from local and foreign investors.
Managing Director of Investment Banking, at United Capital Group, Dr Gbadebo Adenrele, disclosed this during a hybrid roadshow with investors organised by the Debt Management Office (DMO) on Thursday.
He said the auction will open next week Monday and the details of that will be communicated to the market.
Adenrele said: “One of the key aspects of this bond issuance is that it will be listed on platforms such as the Nigerian Exchange and FMDQ, making it accessible to a variety of investors.
“The principal will be repaid after five years, with interest payments made every six months. This structured repayment schedule is designed to provide confidence to investors.”
This dollar bond is the first of its kind in the country, with the bond offering bullet repayment at maturity in US dollars and full repayment of the principal amount at the end of the five-year term.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, affirmed that the country alongside its financial advisors is ready to launch the bond.
He said the bond is a strategic move to channel funds into sectors that will catalyse economic growth in the country.
The Director General of the Debt Management Office (DMO), Patience Oniha, noted that the settlement date for the domestic dollar bond auction will likely be 10 days after the auction date.
