The Nigerian government is set to raise $500 million through a domestic dollar bond at a 9.75% annual yield. This bond, with a five-year term and semi-annual coupon payments, is part of a larger $2 billion issuance planned in tranches.
The funds will support critical sectors of the economy as approved by the President.
Analysts predict strong demand for the bond, given its attractive yield compared to returns on idle funds in domiciliary accounts.
The bond is expected to draw interest from both local and international investors, being benchmarked against Eurobond instruments with similar yields.
Nigeria’s credit outlook is mixed, with Fitch Ratings upgrading the outlook to positive, while Moody’s maintains a stable rating.
The bond will be listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange Limited.