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FG to Raise $500m Through Domestic FX-Denominated Bonds in August

 

ABUJA – The federal government has announced plans to issue $500 million in domestic foreign currency-denominated bonds in August. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, made this announcement during a quarterly press briefing on Thursday. The event was themed ‘Economic Recovery And Growth: Progress and Prospects 2024.’

 

In April, Edun mentioned that the issuance of these bonds would occur in the second quarter of the year. Providing an update at the recent meeting, he emphasized the need to attract savings held abroad by Nigerians.

 

“We have an open exchange rate system; it’s not illegal. We are issuing a dollar-denominated security using the Nigerian financial system, the Securities and Exchange Commission (SEC), the banking system, and investment bankers,” Edun stated. “The initial issuance of $500 million will attract foreign currency held by Nigerians abroad and other investors interested in President Bola Tinubu’s macroeconomic reforms.”

 

The bond issuance is expected to begin within the next three to four weeks

Edun clarified that the government is not planning to raise euro bonds at this time. The decision to pursue international markets for euro bonds will depend on the success of the domestic foreign currency-denominated bonds.

 

“Our ratings and performance merit access to international markets, but we prefer to first encourage Nigerians to invest in the country’s reform success story,” he explained. “Although it’s early, we are headed in the right direction and have turned the corner towards economic growth and success.”

On March 13, reports indicated that Nigeria had hired investment banks, including Citibank NA, JPMorgan Chase & Co., and Goldman Sachs, for advice on a potential eurobond issue. However, the Debt Management Office (DMO) later denied receiving approval for the appointment of transaction advisers and the issuance of eurobonds.

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