By Aaior K. COmfort
The naira gained 4.8% against the US dollar on September 13, 2024, marking its highest increase in nearly two months. This surge followed the sale of Nigeria’s inaugural domestic dollar bond, the largest rise since July 22. The currency closed at 1,558 naira per dollar, its strongest level since August 21, according to Bloomberg.
The appreciation came after Nigeria successfully issued its first foreign-currency domestic bond, which drew $900 million in subscriptions. The bond, worth $500 million, features a five-year maturity with a 9.75% coupon and is part of a $2 billion bond program registered with the Securities and Exchange Commission.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, highlighted that the bond’s proceeds will fund critical economic sectors as approved by President Bola Ahmed Tinubu. The bond issuance attracted a diverse group of investors, including local and diaspora Nigerians, as well as institutional investors.
The successful bond sale has positively impacted investor sentiment, contributing to the naira’s recent strength against the dollar, as noted by Bloomberg.