Nigeria is aiming to raise up to $2 billion through the issuance of dollar-denominated bonds to domestic investors, according to the lead arranger, United Capital Plc.
Thank you for reading this post, don't forget to subscribe!The bond program, set at $2 billion, kicks off with an initial series of $500 million opening on Monday, with a five-year tenure.
The bond is available to Nigerians both at home and abroad, as well as local pension funds. It seeks to attract funds from domiciliary accounts, diaspora remittances, and foreign investments.
However, dollar cash deposits will only qualify if they were made into domestic accounts at least 30 days before the issue, according to United Capital.
As Africa’s most populous nation, Nigeria is issuing this dollar bond locally to help bridge its infrastructure finance gaps, especially since market conditions have not been favorable for Eurobond offerings.
The Nigerian government has approved a 28.8 trillion naira ($18.1 billion) budget for 2024, with a deficit of 9.8 trillion naira, which it plans to finance through a mix of domestic and international borrowing.
