Wale Edun, minister of finance and coordinating minister of the economy, says the $500 million domestic bond was oversubscribed despite warnings from the International Monetary Fund (IMF) not to issue the bond.
Edun spoke on Wednesday during an investors’ meeting in
Washington DC, the United States.
On August 15, the federal government launched the
dollar-denominated domestic bond.
The $500 million bond commenced subscription at $1,000 per
unit to interested investors on August 20.
One month later, Edun said over $900 million was raised from
its first-ever domestic dollar-denominated bond issuance.
He also said the bond saw an over 180 percent subscription.
According to Edun, the successful capital raise shows the
continued confidence of investors in Nigeria’s economic stability and growth
prospects.
Speaking to investors on Wednesday, the minister said the
domestic dollar-denominated bond was over 100 percent subscribed.
“The IMF said to us that we shouldn’t do domestic issues of
dollar bonds. We did it and we were 100% oversubscribed, but we still value
their viewpoint and took it into account,” he said.
Edun also said the IMF plays a significant role in providing
funding and technical assistance.
However, the minister said all advice, information and data
that “these institutions are able to provide is of value, but we don’t always
have to take their advice”.
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