Nigeria and Austria plan a Vienna-listed bond to finance foreign investment projects

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 […] The post FG, Austria plan Vienna-listed bond to fund investors in Nigeria appeared first on Vanguard News.

   The federal government says it is working with Austrian authorities and the Vienna stock exchange to establish a bond vehicle that will raise capital to finance foreign companies investing in projects in Nigeria.   Atiku Bagudu, minister of budget and economic planning, spoke while addressing the GPF Global Vienna meeting in Vienna, Austria, on Tuesday via video message on X.   Bagudu said the vehicle, called Esme bond, had been created after about 18 months of engagement between Nigerian and Austrian officials, the Vienna stock exchange and fund managers.   He said the vehicle has Austrian nationals on its board and representatives of the Nigerian government through the Ministry of Finance Incorporated (MOFI).     “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 companies would be expected to bring their expertise to Nigeria, invest and scale up their operations.   Bagudu said the initiative was part of efforts to mobilise the private capital needed to support President Bola Tinubu’s target of growing Nigeria’s 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.   The minister 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 the relative stability of the naira, adding that some investors had recorded dollar returns of nearly 20 percent.   The minister said Nigeria’s foreign reserves had risen above $50 billion, providing more than 11 months of import cover, while the foreign exchange market had also stabilised.   He said Austria’s strength in technology and Nigeria’s large market and population of about 230 million made both countries complementary investment partners.   Bagudu said he is confident that the partnership can lead to the growth of, evolution of and stronger growth of business between Nigeria and Austria.