Nigeria sets new milestone with United Capital $900m domestic USD bond

Nigeria has reached a historic milestone in its financial sector with the issuance of the country’s first-ever domestic US dollar-denominated bond, led by United Capital Group. The bond raised over $900 million, significantly exceeding expectations with a 180 percent subscription rate, reflecting strong investor confidence in Nigeria’s economic outlook and stability.

The proceeds from the bond are earmarked for critical infrastructural projects, which are expected to have a transformative impact on the nation’s economy. United Capital Group played a key role as the Lead Issuing House and Coordinator, demonstrating its expertise in innovative financial solutions within challenging markets.

Dr. Gbadebo Adenrele, Managing Director of Investment Banking at United Capital Group, described the success of the bond as a “landmark moment” for Nigeria’s capital markets. “United Capital has laid the foundation for larger capital raises by the Nigerian Government, other African sovereigns, and corporate issuers. The strong demand for this bond is a clear testament to the confidence investors have in Nigeria’s economic trajectory,” said Adenrele.

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Peter Ashade, Group CEO of United Capital, emphasized the company’s role in advancing Africa’s financial markets. “This transaction aligns with our vision of transforming the African financial landscape. By providing access to innovative investment opportunities, we are empowering investors and contributing to Nigeria’s economic growth,” he noted.

The success of the bond also highlights the growing appetite for domestic investment opportunities and reaffirms the faith in Nigeria’s future as a hub for economic growth. In addition to United Capital’s leadership, Africa Finance Corporation served as the Global Coordinator, with other key players including Meristem Capital Limited, Stanbic IBTC Capital Limited, and Vetiva Advisory Services Limited acting as Issuing Houses.

United Capital’s pivotal role in this landmark transaction further solidifies its position as a leader in Africa’s financial markets, building on recent achievements such as the listing of Transcorp Power Plc and Sierra Leone’s first local currency corporate bond. This successful bond issuance reinforces United Capital’s capacity to manage significant capital market activities across the continent.