Federal Government to Announce Results of $500 Million Domestic Dollar Bond by Friday

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The Federal Government of Nigeria is set to release the results of its recent $500 million domestic dollar bond offering on or before Friday. Sources close to the deal confirmed to BusinessDay that an official announcement will be made regarding the outcome.

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On August 19, 2024, the government offered the five-year dollar bond with a fixed annual interest rate of 9.75 percent. This bond allows investors to lend the government money in dollars, with a promise of annual interest payments.

The bond offering, which closed on August 30, is expected to be oversubscribed, according to industry analysts. Ayodele Akinwunmi of FSDH Merchant Bank believes the attractive interest rate and Nigeria’s history of not defaulting on loans contributed to investor confidence.

In addition to generating foreign currency reserves, Wale Edun, Minister of Finance, noted that the issuance would help stabilize the exchange rate, manage inflation, and reduce interest rates.

Analysts anticipate that the bond, aimed at high-net-worth individuals, institutional investors, and Nigerians abroad, will increase the supply of dollars in the economy, which could help strengthen the naira.

Gbenga Samson
Gbenga Samsonhttp://ThisDayLive.com
Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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