Nigeria to raise $300 million diaspora bond

Feb 01, 2017

The bond is expected to be issued by June 2017 and mature for a period of five to seven years.

Nigeria's Finance Minister Kemi Adeosun, has made it known that Nigeria will roll out a $300 million diaspora bond in 2017. The diaspora bond is designed to encourage Nigerians living abroad key into investment opportunities in Nigeria. According to First Bank of Nigeria, a book runner of the diaspora bond initiative, the $300 million bond is expected to be issued by June 2017, with
a maturity of five to seven years. Speaking on the initiative, the Finance Minister said, "government is putting in place a lot of incentives such as infrastructure; and is also creating
a conducive environment for investment to thrive, we are encouraging them (diaspora) to come back home and join the trend." The country has
engaged Goldman Sachs and Stanbic IBTC Bank as advisers on the maiden bond, and United Bank of Africa as one of the book runners on the deal. According to Western Union, Nigeria is world's fifth-biggest destination for international remittances. Remittances from Nigerians in diaspora increased from 21 billion dollars in 2015 to 35 billion dollars in 2016 respectively.