Nigeria’s first ever Diaspora Bond was launched on Monday and was considered a resounding success after raising $300 million.
The Bond has a five-year tenure and was offered at a coupon rate of 5.625 percent.
The Director-General of the Debt Management Office (DMO), Dr. Abraham Nwankwo revealed that the Diaspora Bond was 130 percent subscribed. He further confirmed that it was targeted principally at Nigerians abroad, to provide them with the opportunity to contribute to national development, a report by ThisDay confirmed.
“The diaspora bond has opened a new source of financing for the Federal Government of Nigeria for funding projects for the development of the country,” Dr. Nwankwo said in a statement released on Monday. “This new window further enhances funding liquidity and flexibility of the Nigerian economy, which are necessary characteristics as the country gathers momentum towards the attainment of advanced economy status.”
In a bid to appeal to a wide range of investors, the Bond was structured like a retail instrument and offered to the public via commercial lenders and investment firms. It attracted an initial 190percent interest in the Bond, showcasing the renewed appetite for investing in the country as the government continues to put in measures to curb recession and douse currency instability.
With this move, Nigeria becomes the first ever African country to issue a bond targeted at retail investors in the United States.