FG Requires BVN and NIN For $500m Bond Subscription.
The Federal Government has announced that investors interested in its latest financial instrument must meet specific identification requirements to participate. This information was detailed in a Frequently Asked Questions document released by the Debt Management Office on its website.
According to the FAQ, all Nigerian citizens, including those living abroad, are required to have a Bank Verification Number (BVN) and a National Identification Number (NIN) to subscribe to the domestic dollar bond issued on Monday. This bond is part of a larger $2 billion program, with the government aiming to raise $500 million from local and foreign investors in this initial tranche.
Eligible participants for the bond include Nigerians residing in Nigeria, those in the diaspora with foreign exchange savings, and foreign institutional investors. The FAQ states, “A BVN and NIN are required for subscription. Nigerians in the diaspora can apply for both BVN and NIN if they don’t already have them.”
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The DMO’s FAQ also clarifies that subscriptions to the Domestic FGN US Dollar Bond cannot be made in cash. All payments must be conducted through electronic transfers into designated accounts.
Subscriptions can be made electronically or through financial institutions. Additionally, for those planning to use funds from their domiciliary accounts for subscription, the money must have been in the account for a minimum of 30 days prior to the application date.
The bond is intended to finance critical sectors of the Nigerian economy, as approved by the President based on the recommendation of the Minister of Finance and Coordinating Minister of the Economy.
With a coupon rate of 9.75 percent per annum over a five-year tenor, these bonds are aimed at both domestic and international investors, requiring a minimum subscription amount of $10,000.
