Nigeria to Issue First Diaspora Bond, Says DMO

The Debt Management Office (DMO) on Thursday announced on its website the commencement of a global offering of Nigeria’s first Diaspora Bond, saying that the nation had filed a registration statement for the bonds with the U. S. Securities and Exchange Commission and applications will also be made with the relevant authorities in the United Kingdom.

“The bonds will be direct general obligations of Nigeria and will be denominated in U.S. dollars.

“The international Joint Lead Managers are Bank of America Merrill Lynch and The Standard Bank of South Africa Ltd.

“The Nigerian Joint Lead Managers are First Bank of Nigeria Ltd. and United Bank for Africa Plc,’’ it said.

It said there would be a series of investor meetings in the UK, the U. S. and Switzerland from June 13. The office said that pricing was expected to occur following the investor meetings and subject to market conditions.

It said that Diaspora bond was used to raise funds from Nigerians in the Diaspora to finance capital projects and provide an opportunity for them to participate in the development of the country.

As part of measures to fund capital expenditures, the Federal Government had in February announced its offering of one billion dollars euro bond under its newly-established one billion dollars Global Medium Term Note programme.

The office said that the one billion dollars euro bond, which would mature on Feb. 16, 2032, was eight times oversubscribed in the international market at an interest rate of 7.8 per cent with orders in excess of 7.8 billion dollars.