The Nigerian Government is getting ready to offer a special type of bond called a dollar bond next Monday. They hope to collect $500 million from people inside and outside Nigeria. This information was shared by Dr. Gbadebo Adenrele, who works at United Capital Group, during a meeting with investors.
Dr. Adenrele said, “The auction will start next Monday. More details will be shared soon.”
This dollar bond is unique because it will be paid back in full in US dollars after five years. Interest will be paid every six months. This helps investors feel safe about their money.
Dr. Adenrele also mentioned that the bond will be listed on the Nigerian Exchange and FMDQ, which means many people can invest in it.
The Bond Launch Is Close, Says Finance Minister
Wale Edun, Nigeria’s Finance Minister, said that the country and its financial advisors are almost ready to start this bond. He added, “In the financial world, things can change quickly. We are ready to launch the bond soon. This will help Nigeria lead in an important area.”
Mr. Edun also said the bond will be used to support projects that help Nigeria’s economy grow.
Patience Oniha, the Director General of the Debt Management Office, explained that those who buy the bond will get their money about 10 days after the auction date.
What You Should Know
Newslodge had reported that Nigeria launched its first Domestic USD Bond, hoping to raise at least $500 million from investors inside and outside the country. The government could even try to get up to $1 billion if there is a lot of interest.
The bond program can go up to $2 billion, but this number can change. People can start investing with $10,000, and then add extra amounts in multiples of $1,000.
The money from the bond will be used for important projects approved by the President and the Finance Minister, with the approval of the National Assembly.
Importantly, those who invest in this bond won’t have to pay income tax on the interest they earn. The bond will also be available for trading on the Nigerian Exchange Limited and the Financial Market Dealers Quotation, making it easier for everyone to buy or sell them.