Nigeria Seeks $500M in Tax-Free Bonds for Investment Boost.
Nigeria is set to raise $500 million through a new tax-exempt bond aimed at attracting both domestic and international investors to bolster infrastructure and critical sectors. Announced by the Debt Management Office (DMO), this bond will offer a minimum investment of $10,000, with additional increments of $1,000, broadening accessibility for investors in Nigeria and abroad.
Finance Minister Wale Edun emphasized that the bond is part of a strategic effort to drive economic growth and enhance foreign currency reserves. Scheduled for issuance on August 19, 2024, it is expected to help stabilize the naira, manage inflation, and lower interest rates by improving foreign exchange liquidity and boosting reserves. The bond is a shift from Nigeria’s initial plan to issue a Eurobond this year, reflecting a focus on domestic market engagement and funding the budget deficit.
The bond will be listed on the Nigerian Exchange and FMDQ, allowing diverse investment participation. It will be repaid after five years with semi-annual interest payments, aiming to inspire investor confidence through its structured and secure framework. This move aligns with Nigeria’s broader strategy to mobilize both local and international capital to support economic development and address budgetary needs.
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