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FG issues $500 million five-year domestic dollar bond at 9.75%

Bonds

The Nigerian government has announced the issuance of a $500 million five-year domestic dollar bond, opening for subscription on August 19, 2024.

The bond offers a competitive interest rate of 9.75%, aimed at attracting both local and international investors.

The bond issuance is part of the governmentโ€™s ongoing efforts to diversify its funding sources and provide investment opportunities in the domestic market.

The auction for this bond will remain open until August 30, 2024, allowing investors a sufficient window to participate in this offering.

Structured as a five-year investment, the bond features semi-annual coupon payments, providing investors with a steady income stream over the investment period.

Investors have the opportunity to purchase units at a minimum of $1,000 each, with the initial minimum subscription set at $10,000 (equivalent to 10 units). Subsequent investments can be made in multiples of $1,000, offering flexibility for investors looking to adjust their portfolios.

At the end of the five-year term, the bond will be redeemed through a bullet repayment, ensuring that investors receive their principal in full upon maturity.

This structure provides investors with a clear exit strategy and a guaranteed return on their initial investment.

The issuance of this bond comes at a time when Nigeria is looking to bolster its foreign exchange reserves and manage its debt obligations more effectively.

By offering a dollar-denominated bond domestically, the government aims to attract foreign currency into the country while providing a secure investment option for those looking to invest in U.S. dollars within the Nigerian market.

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