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.
Thank you for reading this post, don't forget to subscribe!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.