(Bloomberg) – Nigeria’s government raised $900 million in its first domestic auction of dollar-denominated bonds, almost double the targeted amount.
The five-year notes carry an annual coupon of 9.75%, the Africa Finance Corp, which served as global coordinator of the sale, said in a statement on Wednesday. Similarly dated Nigerian eurobonds currently yield 9.7%.
“The issue closed with a 180% over-subscription, underscoring strong domestic investor confidence in Nigeria’s economic stability and growth potential,” the Lagos-based development institution said.
The Nigerian authorities announced plans in August to raise $500 million from local investors in an initial round of fund-raising that will ultimately target $2 billion. The government is issuing US-currency bonds domestically to help bridge infrastructure-financing gaps, given market conditions haven’t been favorable for a Eurobond offer.
