United Capital Group served as the lead issuing house and coordinator for the successful issuance of Nigeria’s first-ever domestic US dollar-denominated bond, the FGN Domestic Dollar Bond.
The transaction raised over US$900m, achieving more than 180 per cent subscription, which underscores investor confidence in Nigeria’s economic stability and growth prospects.
This inaugural issuance under the Domestic FGN US Dollar Bond programme offers a competitive yield of 9.75 per cent.
It garnered substantial interest from a broad range of investors, including Nigerians and non-Nigerians residing in Nigeria, Nigerians in the diaspora, and institutional investors.
The bond will be listed on both the Nigerian Exchange Limited (NGX) and the FMDQ Securities Exchange Limited (FMDQ Exchange).
Proceeds from the issuance will be directed toward key sectors of the economy, in alignment with ongoing efforts to foster growth and address critical infrastructure gaps.
Commenting on the success of the issuance, Managing Director, Investment Banking at United Capital Group Dr. Gbadebo Adenrele said “This is a landmark moment for Nigeria’s capital market.
“As a pioneer in this class of transactions, United Capital has laid the foundation for more such significant capital raises by the Nigerian Government, other African sovereigns and major corporate issuers.
“The successful issuance of the Domestic FGN US Dollar bond is a testament to investor confidence in the country’s economic growth trajectory and our innovative approach to finance”.
The Group CEO, United Capital Group, Peter Ashade said: “The successful issuance of Nigeria’s inaugural Domestic FGN US Dollar bond is a significant milestone for both the country and United Capital.
“This transaction aligns perfectly with our vision of transforming the African financial landscape. By providing access to innovative investment opportunities, we are empowering investors and contributing to Nigeria’s economic growth”.
According to the statement, alongside United Capital’s role as the Lead Issuing House/Coordinator for the domestic bond issuance; Africa Finance Corporation served as the Global Coordinator; Meristem Capital Limited, Stanbic IBTC Capital Limited and Vetiva Advisory Services Limited acted as Issuing Houses; Constant Capital Markets & Securities Limited and Iron Global Markets Limited acted as Financial Advisers; Olaniwun Ajayi LP and G. Elias acted as Solicitors; and Greenwich Trustees Limited acted as Trustee.