The Director-General, Debt Management Office (DMO), Dr. Abraham Nwankwo on Monday said that the Federal Government has raised $300 million from its Diaspora Bond issued in the International Capital Market.
The Bond which was targeted at Nigerians in the Diaspora to enable them contribute to the national development was raised at the rate of 5.625 per cent for a tenor of five years.
According to the DMo boss, the bond was structured as a retail instrument to appeal to a wide base of investors, adding that it was offered through private banks and wealth managers, rather than the institutional investors that deal in large volume transactions.
“There was considerable interest from investors from all over the world, with the issuance attracting initial orders of about 190 per cent of the offered amount. Final subscriptions were about 130 per cent of offer at the final price for the transaction,” he said.
Nwankwo said the Diaspora bond had opened a new source of financing for projects for the country’s development. This new window, he said, would enhance the funding liquidity and flexibility of the economy, which are necessary characteristics as the country gathers momentum towards the attainment of advanced economy status.
