ABUJA, Aug 16 (Reuters) – Nigeria’s Finance Minister Wale Edun launched a $500 million dollar-denominated bond sale on the local market on Thursday, targeting domestic and foreign investors, the finance ministry said on Friday.

The ministry said in a statement that the move was part of plans to stabilise the naira currency by attracting dollars held by Nigerians abroad, as well as international investors who back reforms initiated by President Bola Tinubu.

Edun told Reuters in May that Nigeria would launch a diaspora bond in the third quarter. He said the bond would be issued locally but denominated in U.S. dollars.

While promoting the $500 million bond, Edun said on Thursday government revenue and expenditure had improved and interventions to reduce inflation were yielding results.

Nigeria’s headline inflation rate fell in July for the first time in well over a year, dipping to 33.40% in annual terms from 34.19% in June, data from the statistics agency showed on Thursday.

The ministry gave no details of the bond’s duration and when the sale will close.

Edun has considered plans for Nigeria to sell Eurobonds in the past. He said in the ministry’s statement that “the ratings system often does not favour the continent”. African issuers have faced challenges in international capital markets particularly with pricing for their debt.

In June, the World Bank approved a total of $2.25 billion loan for Nigeria to help stabilise its economy following reforms and to scale up support for the poor.

(Reporting by Camillus Eboh;Writing by Chijioke Ohuocha; Editing by Emelia Sithole-Matarise)