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Africa Finance Corporation (AFC) has disclosed its leading role in the issuance of an inaugural domestic dollar bond by the Federal Government of Nigeria, last month, raising $900 million. AFC acted as Global Coordinator for the first-of-its-kind issuance in Nigeria’s capital market.

The bond, which was issued at par, has a tenor of five years, with an annual coupon of 9.75%. The issue closed with a 180% oversubscription, underscoring strong domestic investor confidence in Nigeria's economic stability and growth potential, and the effectiveness of AFC’s strategic capital markets leadership, AFC said.

As a domestic issue, the investor base comprised Nigerians and non-Nigerians resident in Nigeria, Nigerians in the Diaspora, and institutional investors. The bond will be listed and available for trading on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited.

"This inaugural domestic US dollar bond issuance is a significant achievement for Nigeria and marks a new chapter in the development of the country's capital markets," said Banji Fehintola, Executive Director and Head of Financial Services, Africa Finance Corporation. "We are honoured to have played a leading role in this landmark transaction as the Global Coordinator, which aligns with AFC's mission to develop domestic capital markets in Africa by providing innovative financing solutions that meet the continent's unique needs and also leveraging our deep capital market expertise to serve and deliver value to our clients. This successful issuance not only showcases Nigeria's economic potential but also reinforces the benefits of African nations looking inward to tap the deep pool of domestic capital on the continent and taking the lead in financing their own development."

In a statement issued by the financier, AFC said it has a solid track record in capital markets with a well-established diverse investor engagement programme that included issuance of a US$1.16 billion global syndicated loan earlier this year.

Alongside AFC’s role as Global Coordinator for the domestic bond issuance, United Capital Plc acted as Lead Issuing House/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.