Nigeria is seeking to raise up to $2 billion through the issuance of dollar-denominated bonds to domestic investors, as reported by United Capital Plc, the lead arranger. The bond program, which has a total target size of $2 billion, will kick off its first series on Monday with an initial offering of $500 million. These bonds are set to mature in five years.
The bond issuance is available to Nigerians both at home and abroad, as well as to local pension firms. The program is targeting funds from domiciliary accounts, diaspora remittances, and foreign investments. However, United Capital noted that only dollar deposits made into domestic accounts at least 30 days before the issuance date will be eligible.
This move comes as Nigeria, Africa’s most populous nation, looks to bridge its infrastructure financing gaps. The domestic dollar bond is being issued as an alternative to Eurobonds, given the current unfavorable market conditions for international offers. The Nigerian government has approved a 28.8 trillion naira ($18.1 billion) spending plan for 2024, with a projected deficit of 9.8 trillion naira, which it intends to finance through a mix of domestic and international borrowing.
Credit: Businessday NG (Text Excluding Headline)
