Nigeria's first Diaspora Bond starts trading on London Exchange

London Stock Exchange on Thursday welcomes Nigeria's first Diaspora Bond to start trading on the Main Market. 

Nigeria raised its first diaspora five-year bond worth $300 million at 5.625 percent and said proceeds from the debt note will be used to fund infrastructure projects in the West African country. 

The bond is the first from an African country that is registered with both the UKLA and the U.S. SEC and targeted at retail investors.

Interest in the bond was high from retail investors around the world and was 130 percent subscribed, raising a total of $300 million. The bond follows the successful raising of $1.5 billion through Nigeria's Eurobond earlier this year.
'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," 

said Ibukun Adebayo, Head of Middle East, Africa and South Asia, International Markets Unit, London Stock Exchange said:.

 He said 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.
"Today, Nigeria records another milestone in international capital markets as it lists its debut Diaspora Bond on London Stock Exchange," said the Director-General of the Debt Management Office (DMO), Abraham Nwankwo.

He said 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'.

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