London Stock Exchange Admits Nigeria’s Diaspora Bond

By Modupe Gbadeyanka

The first diaspora bond sold by Nigeria recently was on Thursday, June 29, 2017, listed on the London Stock Exchange (LSE).

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

“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,” he added.

“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,” Mr Adebayo said.

This month, the Federal Government, through the Debt Management Office (DMO), raised $300 million from the exercise targeted Nigerians abroad who which to contribute to the development of the West Africa’s biggest economy.

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

The bond was oversubscribed by investors by about 130 percent, further affirming confidence in the Nigerian economy despite its present economic downturn.