The bond which hopes to raise $500 million is the first of its kind in Nigeria and is open to both 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) yesterday.
The bond offers bullet repayment at maturity in US dollars, with full repayment of the principal amount at the end of the five-year term.
Debt Management Office (DMO) informed that minimum subscription is $10,000 and it is open to retail and qualified institutional investors and it is tax exempt.
It noted that projects for which the $500 million would be used is to be determined by President Bola Ahmed Tinubu.
Minister of finance and Coordinating minister of the economy, Wale Edun, had in April this year, announced that the domestic dollar denominated bond would be issued in the second quarter (Q2) of 2024.
Edun said then that the government needs to attract savings Nigerians held abroad.
According to him, “We have an open exchange rate system, it’s not illegal and so we have the issuance of a dollar-denominated security, not depending on the financial architecture of the western world, not depending on the kind of architecture that you use to raise eurobonds.
“We’re using the Nigerian financial system, the Securities and Exchange Commission (SEC), the banking system, the investment bankers to issue $500 million in the first instance that will be available and will attract foreign currency held by Nigerians abroad and anybody else who buys into the macroeconomic reform efforts of President Bola Tinubu.
“That issue is a challenge to the best and the brightest in the financial markets. It is due to open in the next three to four weeks maximum.”
Edun said the government is not currently planning to raise euro bonds, adding that moving forward with the idea will be dependent on the success of the domestic foreign currency-denominated bonds.
“Right now, depending on the success of that issue, there is no talk of looking to go to the international markets to raise the euro bond,” the minister said.
