June 30, 2017

Nigeria’s Diaspora Bond oversubscribed by 130%

Begins trading on London Stock Exchange

By Soni Daniel, Northern Region Editor

ABUJA — Nigeria’s ambitious drive to raise funds through its nationals abroad has fetched it a whopping $300 million realised through its first Diaspora Bond, which had been oversubscribed by 130 percent, demonstrating investors confidence in the economy.

At the same time, the achievement has given Nigeria the impetus to begin trading on the London Stock Exchange and has made history as the first country in sub-Saharan Africa to achieve such a feat.

With the feat, Nigeria formally begins its trading on the London Stock Exchange today, registering its presence on the LSE, one of the biggest financial markets in the world.

A statement from the LSE made available to Vanguard, yesterday, said: “London Stock Exchange today welcomes Nigeria’s first Diaspora Bond to start trading on the Main Market. Proceeds from the five-year, 5.625 per cent bond will be used to fund infrastructure projects in the country.

“The bond is the first from an African country that is registered with both the UKLA and the US  SEC and targeted at retail investors.

“Interest in the bond was high from retail investors around the world and was 130 per cent subscribed, raising a total of $300 million. The bond follows the successful raising of $1.5 billion through Nigeria’s Eurobond earlier this year.”

The Head of Middle East, Africa and South Asia, International Markets Unit, London Stock Exchange, Ibukun Adebayo, said: “We are delighted to welcome Nigeria’s third capital raising this year on London Stock Exchange.”

The innovative structure of the bond allows, for the first time, retail investors to participate in the financing of infrastructure projects as part of the development of Nigeria’s economy. The successful listing reinforces London Stock Exchange’s position as a strong partner for Nigeria and as a leading global venue for raising debt finance”.

In his comments, Director General of the Debt Management Office, DMO, Dr. Abraham Nwankwo, noted:  “Today, Nigeria records another milestone in international capital markets as it lists its debut Diaspora Bond on London Stock Exchange.

‘’The opening of this source of funding for Nigeria and the listing of the Diaspora Bond on London Stock Exchange will ensure that the opportunity to invest in Nigeria will be available to a wider range of investors especially Nigerians in Diaspora who wish to contribute to the development of the country and also earn returns.

Further issuance of the Diaspora Bond are planned to finance the development of Nigeria’s infrastructure.”.