AFC Leads Nigeria’s Inaugural Domestic Dollar Bond Issuance, Raising US$900M

The bond issuance aligns with Nigeria's efforts to deepen its domestic capital markets and diversify funding sources.

Africa Finance Corporation (AFC), a leading infrastructure solutions provider on the continent, has announced the successful issuance of the Federal Government of Nigeria’s (FGN) first-ever domestic dollar bond, raising US$900 million. This milestone marks a significant step in Nigeria’s economic development, underscoring investor confidence in the country’s growth potential and economic stability.

AFC served as the Global Coordinator for this landmark issuance, which has a five-year tenor and an annual coupon of 9.75%. The bond was oversubscribed by 180%, reflecting strong demand from Nigerian and non-Nigerian residents, as well as Nigerians in the Diaspora. Investors will be able to trade the bond on both the Nigerian Exchange Limited (NGX) and FMDQ Securities Exchange Limited (FMDQ Exchange).

The bond issuance aligns with Nigeria's efforts to deepen its domestic capital markets and diversify funding sources. The proceeds will be allocated to critical sectors of the economy as approved by the President, based on recommendations from the Minister of Finance, and subject to approval by the National Assembly.

"This inaugural US dollar bond issuance is a pivotal achievement for Nigeria’s capital markets," said Banji Fehintola, Executive Director and Head of Financial Services at AFC. He highlighted the importance of African countries tapping into domestic capital for sustainable development and praised the successful transaction as a showcase of Nigeria's economic potential.

AFC has a proven track record in capital markets, including a US$1.16 billion global syndicated loan earlier this year and has received accolades such as "The Most Innovative Bond" award for its JPY 75 billion Samurai Bond Guarantee to Egypt.

The issuance was supported by United Capital Plc as Lead Issuing House/Coordinator, with participation from Meristem Capital Limited, Stanbic IBTC Capital Limited, and Vetiva Advisory Services Limited. Legal and financial advisors included Olaniwun Ajayi LP, G. Elias, Constant Capital Markets & Securities Limited, and Iron Global Markets Limited, while Greenwich Trustees Limited served as Trustee. 4o