Nigeria is seeking to raise as much as $2 billion through the issuance of dollar-denominated bonds to domestic investors, as part of its efforts to bridge infrastructure financing gaps in the country. According to United Capital Plc, the lead arranger, the bond program will have a total size of $2 billion, with the first series opening on Monday at $500 million. These bonds will have a five-year tenure.
The bond is available to Nigerians both within the country and abroad, as well as local pension firms. Funding sources include domiciliary accounts, diaspora remittances, and foreign investments. However, only dollar deposits that have been in domestic accounts for at least 30 days before the bond’s issuance will qualify.
Nigeria’s move to issue a dollar bond locally reflects its strategy to secure alternative funding for infrastructure projects, given that current market conditions are unfavorable for Eurobond offers. The government has approved a 28.8 trillion naira ($18.1 billion) spending plan for 2024, with a 9.8 trillion naira deficit, which it plans to finance through both domestic and international borrowing.
