The Naira saw its largest gain in nearly two months following the federal government’s debut domestic dollar-bond issue, which drew substantial interest.
Bloomberg data shows the Naira surged 4.8% against the dollar on Wednesday, marking its biggest increase since July 22.
The currency closed at 1,558 naira per dollar, its highest level against the greenback since August 21.
It was earlier reported that Finance Minister Wale Edun announced the government raised $900 million in its first domestic sale of dollar-denominated bonds, almost double the targeted amount.
Edun stated that the bond issuance was met with over 180% subscription, reflecting strong investor confidence in Nigeria’s economic stability and growth potential.
The bond, priced at par with a 9.75% coupon rate over five years, is the first issuance under the Domestic FGN US Dollar Bond Programme, established by Presidential Executive Order No. 16 of 2023.
The bond attracted a diverse array of investors, including domestic and international participants, Nigerians in the diaspora, and qualified institutional investors.
Edun noted that the bond’s proceeds will be allocated to critical sectors as authorized by President Bola Ahmed Tinubu.
He emphasized that this successful issuance highlights the government’s commitment to diversifying funding sources and fostering economic growth amidst current challenges.
Edun expressed confidence in Nigeria’s economic trajectory, describing the bond issuance as extremely successful.
“The issuance of this inaugural Domestic FGN US Dollar Bond demonstrates that investors, as well as Nigerians, continue to have faith in the country’s economy” the minister said.
