Investors invited as Nigeria unveils $500 Million bond, subscription open until August 

The Federal Government of Nigeria has officially launched a $500 million dollar-denominated bond, available for subscription starting August 19, 2024.

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This follows the government’s earlier announcement of its intention to issue the bond as part of its financing initiatives. The bond carries an interest rate of 9.75 percent per annum and is set to mature in 2029.

The subscription period for the bond will remain open until August 30, 2024, providing ample opportunity for investors to participate.

The settlement date, when investors’ purchases will be confirmed and interest will begin to accrue, is scheduled for September 6, 2024.

This bond represents a significant component of Nigeria’s financial strategy, offering investment opportunities to both domestic and international investors. Structured as a five-year investment, the bond will make coupon payments semi-annually.

Investors can buy units starting at $1,000 each, with an initial minimum subscription of $10,000 (equivalent to 10 units). Subsequent investments can be made in multiples of $1,000. The bond will be redeemed through a bullet repayment at the end of the five-year term, ensuring that investors receive their principal in full upon maturity.

This bond issuance is part of the government’s broader efforts to stimulate the Nigerian economy, as outlined by the Minister of Finance, Wale Edun. Patience Oniha, the Director General of the Debt Management Office (DMO), also noted that the settlement for this bond will occur 10 days after the auction date.