The Federal Government is working with Austrian authorities and the Vienna Stock Exchange to establish a bond vehicle to raise capital for foreign companies investing in projects in Nigeria.
Minister of Budget and Economic Planning, Atiku Bagudu, disclosed this while addressing the GPF Global Vienna meeting in Vienna, Austria, on Tuesday via a video message posted on X.
Bagudu said the vehicle, known as the Esme Bond, was developed after about 18 months of engagement involving Nigerian and Austrian officials, the Vienna Stock Exchange and fund managers.
According to him, Austrian nationals and representatives of the Nigerian government through the Ministry of Finance Incorporated, MOFI, are represented on the board of the vehicle.
“The idea is that this vehicle will float bonds on the Vienna Stock Exchange in order to fund Austrian companies or other businesses in green technology, waste to energy, textiles, pharmaceutical, as well as agricultural companies,” Bagudu said.
He said the beneficiary companies would be expected to bring their expertise to Nigeria, invest and scale up their operations.
The minister said the initiative was part of efforts to mobilise the private capital required to support President Bola Tinubu’s target of growing the Nigerian economy to $1 trillion.
“Our president had given us a target that let’s aim for a $1 trillion economy, and a $1 trillion economy requires a lot of private capital,” he said.
Bagudu said the government was working to complete outstanding requirements for the bond placement.
He also said Nigerian bonds had become more attractive to foreign investors following what he described as relative stability in the naira, adding that some investors had recorded dollar returns of nearly 20 per cent.
The minister further said Nigeria’s foreign reserves had risen above $50 billion, providing more than 11 months of import cover, while the foreign exchange market had stabilised.
Bagudu said Austria’s strength in technology, combined with Nigeria’s large market and population of about 230 million, made the two countries complementary investment partners.
He expressed confidence that the partnership would deepen business ties and promote stronger economic cooperation between Nigeria and Austria.
The post FG, Austria plan Vienna-listed bond to fund investors in Nigeria appeared first on Vanguard News.