The federal government to raise fund through the issuance of $300 Diaspora bond got boosted as the bond was oversubscribed by 130%.
The feat, the first by a country in the sub-Sahara of Africa has led to its trading on the London Stock Exchange. “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”, in a statement by the LSE.
“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”.
