The Federal Government of Nigeria is set to announce the results of its $500 million domestic US dollar bond by Friday.
The bond, which was offered on August 19, 2024, and closed on August 30, 2024, has a five-year maturity with a fixed annual interest rate of 9.75%.
This offering is expected to be oversubscribed, as analysts predict strong investor interest due to the attractive interest rate and the security of the investment.
Experts have highlighted several benefits of the bond, including its appeal to high-net-worth individuals and institutional investors.
The bond is expected to attract funds from domiciliary accounts, Nigerian savings abroad, and the Nigerian diaspora.
It offers a risk-free investment opportunity, with no exchange rate risk and tax-exempt interest income, making it an attractive option for investors.
The bond issuance is part of the government’s strategy to enhance foreign currency reserves, stabilize the exchange rate, manage inflation, and reduce interest rates.
The Federal Government bonds are considered a secure and profitable investment, offering high returns, liquidity, and multiple benefits for investors, while also supporting the nation’s economic development.