Domestic FGN Dollar Bond Achieves 180% Subscription, Raises $900m

The FGN Domestic Dollar Bond, Nigeria’s first ever domestic US dollar-denominated bond, achieved 180 per cent subscription.

The transaction generated unprecedented domestic demand, raising over $900 million, to achieve over 180 per cent subscription levels. This was stated in a statement by United Capital Group, the Lead Issuing House and Coordinator for the transaction.

This emphasised United Capital’s placing power in the capital markets and strong investor confidence in Nigeria’s economic stability and growth potential.

This first issuance under the Domestic FGN US Dollar Bond program offers a 9.75 per cent yield and attracted significant demand from a diverse group of investors, including Nigerians and non-Nigerians residing in Nigeria, Nigerians in Diaspora, and institutional investors.

The bond will be listed on the Nigerian Exchange Limited (NGX) and FMDQ Securities Exchange Limited (FMDQ Exchange) as the proceeds from the bond will be deployed to critical sectors of the economy, as part of ongoing efforts to sustain growth and address key infrastructure gaps.

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Speaking on the success of the issuance, the 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, emphasised United Capital’s commitment to developing Africa’s capital markets.

“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,” he said.

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.

United Capital Group said, its pivotal role in this transaction highlights its capacity to lead and manage significant capital market activities, as recently demonstrated with the listing by introduction of Transcorp Power Plc on the NGX and the issuance of Sierra Leone’s first local currency corporate bond, reinforcing its reputation in Africa’s financial landscape.

United Capital Group is a leader in the financial and investment services space, offering a complimentary suite of service offerings: Investment Banking, Asset Management, Trusteeship, Securities Trading, Wealth Management, Consumer Finance and Microfinance Banking.