Nigeria is moving to channel domestic and foreign capital into infrastructure and other critical sectors with its new $500 million tax-exempted bond to local and foreign investors.
The bond, unveiled Thursday through the Debt Management Office (DMO) has a face value of $500 million, will be accessible to a broad range of investors. The minimum investment amount is set at $10,000, with additional investments allowed in increments of $1,000. This structure is intended to enable wider participation among investors, both within Nigeria and the diaspora.
“This bond issuance is more than just a financial instrument; it is a strategic move to channel funds into sectors that will catalyse economic growth,” Wale Edun, minister of finance and coordinating minister of the economy said at the roadshow in Lagos.
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This bond issuance is just the beginning,” noted the Minister of Finance. “We aim to mobilise resources effectively and channel them into the country’s development needs. This initiative aligns with our broader strategy to utilise both domestic and foreign capital for infrastructure and other critical sectors.”
In his presentation, Gbadebo Adenrele, managing director of UnitedCapital, said, “One of the key aspects of this bond issuance is that it will be listed on platforms such as the Nigerian Exchange and FMDQ, making it accessible to a variety of investors. The principal will be repaid after five years, with interest payments made every six months. This structured repayment schedule is designed to provide confidence to investors.”
Details later…
