Something BIG can happen on Monday in Nigeria. Yes, I will understand the protocol which the Nigerian stock exchange (NGX) has put in place to enable the federal government of Nigeria to raise $500 million via US dollar denominated bond in Nigeria.
The Federal Government of Nigeria is preparing to issue its first-ever dollar-denominated domestic bond on Monday, aiming to raise $500 million from a mix of local and international investors. This groundbreaking move comes as the government seeks to diversify its funding sources and attract foreign investment into the country.
The announcement, made by Dr. Gbadebo Adenrele, Managing Director of Investment Banking at United Capital Group, during a hybrid roadshow organized by the Debt Management Office (DMO), signals a pivotal moment in Nigeria’s financial markets. Adenrele confirmed that the auction will open next week on Monday, with more details to be communicated to investors.
I am wishing that it works and works really well. Because if that is the outcome, NGX should then remove the veil, and allow private companies, especially tech startups, to also go to NGX and raise money in US dollars! When I say NGX, the Securities & Exchange Commission 9SEC) is included.
The USD bond in Nigeria could open a new element in how private companies are being funded in Nigeria. NGX/SEC – if you can do it for the federal government, you should also do it for private companies. In the past, you had argued that it was not possible, without some changes, but it seems we have figured out what to do.
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Let us go all the way, and IPO in Lagos in USD (lol).
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