Nigeria Aims to Raise $2 Billion in Domestic Dollar Bond Sale
The domestic dollar bond has a program size of $2 billion, with series one opening on Monday at a size of $500 million, the investment bank said in an emailed document. The bonds will have a five-year tenure.
Nigeria is targeting as much as $2 billion through the issuance of dollar-denominated bonds to domestic investors in the West African nation, according to the lead arranger United Capital Plc.
The domestic dollar bond has a program size of $2 billion, with series one opening on Monday at a size of $500 million, the investment bank said in an emailed document. The bonds will have a five-year tenure.
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The bond, which is available to Nigerians residing in the country and abroad as well as local pension firms, is targeting funds from “domiciliary accounts, diaspora remittances and foreign investments,” United Capital said.
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Dollar cash deposits will not qualify unless they were made into domestic accounts at least 30 days before the issue, it said.
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Africa’s most populous nation is issuing dollar bond locally to help bridge infrastructure finance gaps given market conditions haven’t been favorable for the offer of Eurobonds.
The government approved a 28.8 trillion naira ($18.1 billion) spending plan for 2024, with a deficit of 9.8 trillion naira, which it aims to finance from domestic and international borrowing.
Source:norvanreports.com
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