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Nigeria’s $300m Diaspora Bond Starts Trading on LSE

By Dipo Olowookere

The London Stock Exchange (LSE) has welcomed Nigeria’s first diaspora bond sold this month, where $300 million was raised.

The retail bond was aimed at Nigeria’s global expatriate community seeking to invest in the country’s development and the offer was 130 oversubscribed by investors, demonstrating confidence in Nigeria’s economy.

Proceeds from the five-year, 5.625 percent bond will be used to fund infrastructure projects in the country.

It was the first bond of its kind from sub-Saharan Africa and also the first to be registered with both the UKLA and the US SEC.

The bond started trading on the floor of the LSE yesterday after it was admitted on the platform’s Main Market.

Director General of the agency which carried out the exercise, the Debt Management Office (DMO), Dr Abraham Nwankwo, noted that, “Today (Thursday), 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 issuances of the Diaspora Bond are planned to finance the development of Nigeria’s infrastructure.”

Also commenting, Head of Middle East, Africa and South Asia, International Markets Unit at the LSE, Mr Ibukun Adebayo, “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.”

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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