Presidency tells Nigerians to buy into $300m Diaspora Bond

Bond Market

Nigerians have been urged to take advantage of the first ever 300 million Dollars Diaspora bond.

The presidency asked Nigerians to buy into the offer.

Senior Special Assistant to the President on Foreign Affairs and Diaspora Abike Dabiri-Erewa said that the Debt Management Office (DMO) had announced the commencement of a global offering of Nigeria’s first Diaspora Bond.

Mrs Dabiri-Erewa stated that the DMO also filed a registration statement for the bonds with the US Securities and Exchange Commission.

Financing capital projects
The Diaspora bond would be used to raise funds from Nigerians in the Diaspora to finance capital projects.

According to her, the“bond will provide an opportunity for them to participate in the development of the country.’’

She said “her office and Nigerians in the Diaspora were excited as the first ever Diaspora bond was being rolled out to the benefits of the people.’’

The Presidential aide explained that it was a unique way of lubricating the interest of Nigerians in the Diaspora to participate in the developmental projects being carried out by President Muhammadu Buhari’s government.

The Minister of Finance, Mrs Kemi Adeosun had in February, promised that the Diaspora bond would soon be rolled out by the DMO.

The DMO had also said that application would be made for the bonds to be admitted to the official list of the UK Listing Authority and the London Stock Exchange Plc.

According to Dabiri-Erewa , this is to ensure that the bonds are admitted to trading on the London Stock Exchange’s regulated market.

“The bonds will be direct general obligations of Nigeria and will be denominated in US Dollars…The international Joint Lead Managers are Bank of America Merrill Lynch and The Standard Bank of South Africa Limited.

“The Nigerian Joint Lead Managers are First Bank of Nigeria Limited and United Bank for Africa Plc,’’ the Debt Management Office stated.

It added that there would be a series of investor meetings in the UK, the US and Switzerland from June 13.

Mrs Dabiri-Erewa said that as part of measures to fund capital expenditures, the Nigerian government had in February announced its offering of one billion dollars euro bond.

The bond, she said, was under its newly-established one billion dollars Global Medium Term Note programme.

NAN/Mercy Chukwudiebere