DMO Issues $300M Diaspora Bond. Nigerians Encouraged To Buy

by Bamidele Ogunberu Last updated on July 25th, 2017,

Senior Special Assistant to the President on Foreign Affairs and Diaspora Abike Dabiri-Erewa said that the Debt Management Office (DMO) has announced the commencement of a global offering of a new 300 million Dollars Diaspora Bond.

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

Diaspora bond For 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 was 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.

Kemi Adeosun

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

Diaspora bond to be listed on London Stock Exchange

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 Debt Management Office stated:

“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.’’

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.

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