The Nigerian government is offering a $500 million dollar bond for people to buy starting from August 19, 2024.
This bond will help the government get money and will give a 9.75% interest each year. The bond will last until 2029.
The bond will be open for buying until August 30, 2024. This means people have some time to decide if they want to buy it.
If you buy the bond, your purchase will be confirmed on September 6, 2024, and that’s when you’ll start earning interest.
Details of the Bond Offering
Nigeria is using this bond to help their financial plans and give a chance to investors both in and out of the country.
The bond is a five-year plan, and investors will get paid interest twice a year.
You can buy a unit of the bond for at least $1,000, with a minimum first purchase of $10,000 (10 units). After that, you can buy more in multiples of $1,000.
When the five years are up, you get all your money back at once, called a “bullet repayment.”
Anyone can buy this bond. This includes people living in Nigeria, Nigerians living abroad, and big investment companies.
The bond is considered a safe investment under several Nigerian laws, meaning it’s good for pension funds, trusts, and institutional investors.
Investing in this bond gives some tax benefits for pensions and other investors because it’s considered a government security.
This bond fits into the government’s big plan to get investments both locally and from Nigerians abroad. This is because the Nigerian government backs the bond completely, so it’s very secure.
The bond will be listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange Limited, making it easy to buy and sell.
United Capital Plc is leading the bond sale along with Meristem Capital Limited, Stanbic IBTC Capital Limited, and Vetiva Advisory Services Limited.
Access Bank Plc, Citibank Nigeria Ltd., and Guaranty Trust Bank Ltd. are some of the main banks helping sell the bond.
What you should know
- Before, it was reported that Nigeria planned to make this bond available on Monday and hoped to get $500 million from investors both at home and abroad.
- Dr. Gbadebo Adenrele, a top executive at United Capital Group, talked about the bond during a meeting with investors.
- The Minister of Finance, Wale Edun, said this bond will help increase Nigeria’s foreign reserves and stabilize the country’s currency.
- They hope to get up to $1 billion from this bond if enough people invest in it.