The Federal Government has announced that investors interested in its latest financial instrument, the Domestic FGN US Dollar Bond, must provide specific identification requirements to participate. According to the Debt Management Office’s Frequently Asked Questions document, Nigerian citizens, including those living abroad, must possess a Bank Verification Number (BVN) and National Identification Number (NIN) to subscribe to the bond.
The bond, part of a $2 billion program, aims to raise $500 million from local and foreign investors in its first tranche. Eligible participants include Nigerians resident in Nigeria, those in the diaspora with foreign exchange savings abroad, and foreign institutional investors.
Key requirements and features of the bond include:
- BVN and NIN required for subscription
- Subscriptions cannot be made in cash; electronic transfers only
- Minimum subscription amount of $10,000
- 9.75% per annum coupon rate over a five-year tenor
- Income exempt from Companies Income Tax, Personal Income Tax, and Capital Gains Tax
- Listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited
- Auction open until August 30, 2024; settlement date set for September 6, 2024
The Minister of Finance, Wale Edun, stated that the bond will enhance external reserves and help stabilize the foreign exchange situation in the country.
