The Debt Management Office (DMO) has officially launched a ₦300 billion infrastructure bond dedicated to funding Phase 2 of the Renewed Hope Cities programme, with subscription open from February 24 to March 7, 2026.
The bond, issued under the Federal Government’s 2026 borrowing plan, carries a 12.5% coupon rate and 10-year tenor, targeting institutional investors (pension funds, insurance companies), banks, and diaspora funds to accelerate delivery of over 80,000 additional affordable housing units across priority states.
This follows the ₦500 billion capex allocation in the 2026 budget and FMBN’s rate cut to 9.25%, signaling intensified federal commitment to addressing the 28 million housing deficit through scaled-up supply of mid-market, solar-ready homes.
Bond Details (Key Terms – February 2026)
- Issue size: ₦300 billion
- Coupon rate: 12.5% per annum (semi-annual payments)
- Tenor: 10 years (maturity March 2036)
- Subscription period: February 24 – March 7, 2026
- Minimum subscription: ₦50,000 (retail) / ₦1 million (institutional)
- Target investors: Pension funds, insurance, banks, diaspora (via dollar-linked tranches)
- Use of proceeds: 100% for Renewed Hope Cities Phase 2 (construction, infrastructure, subsidies)
Yield Comparison (Mid-Feb 2026)
- Renewed Hope Infrastructure Bond: 12.5%
- FG 10-year bond (existing): 11.8–12.2%
- Commercial bank lending rate: 18–21%
- FMBN Renewed Hope mortgage: 9.25% (first 5 years)
The bond’s 12.5% coupon offers attractive risk-adjusted yield for fixed-income investors, with sovereign guarantee backing.
Eligible Projects & Unit Focus (Phase 2 Allocation)
- Target units: 80,000+ (primarily 2–3 bedroom flats & terraces)
- Price range: ₦25M–₦65M (mid-market focus)
- Features: Solar-hybrid power, rainwater harvesting, energy-efficient designs
- Priority states: Lagos, Ogun, FCT, Kano, Rivers, Enugu, Oyo, Kaduna (highest deficit areas)
- Delivery acceleration: Phase 2 targets 40,000 units by end-2027, balance by 2029
Impact on Mid-Market Supply & Pricing in 2026
- Increased supply — Expected to moderate mid-market price growth in Lagos/Ogun emerging corridors (Ikorodu, Mowe–Ofada, Sangotedo) from 12–18% to 8–12% YoY
- Rental yield stability — Solar-ready units projected to maintain 15–24% premium (Estate Intel mid-Feb 2026)
- Investor opportunity — Bond proceeds enable faster estate delivery → off-plan entry in Phase 2 sites offers 15–25% appreciation + 12–18% yields
- Affordability boost — Lower developer holding costs → potential ₦2M–₦5M reduction in unit pricing for eligible buyers
Final Thoughts
The ₦300 billion infrastructure bond launch is a major boost for Renewed Hope Cities Phase 2, accelerating affordable housing supply and stabilizing mid-market pricing in 2026.
For investors: the bond offers attractive fixed-income exposure with direct housing impact. For buyers: watch for Phase 2 estate launches in priority states — subsidized access + solar-ready features make them compelling.
Are you subscribing to the bond or targeting Phase 2 estates? Share your plan below!
Disclaimer: This information is for general purposes only and not legal advice. Consult a qualified real estate lawyer for guidance.
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