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Investors Get Alert As Nigeria’s $300m Diaspora Bond Matures.

Investors Get Alert As Nigeria’s $300m Diaspora Bond Matures.

By Aduragbemi Omiyale

Nigerians living abroad who invested in the $300 million diaspora bond issued by the federal government in 2017 have received the value of their initial investment.

The debt instrument matured on June 27, 2022, and according to a statement issued by the Debt Management Office (DMO), the bond has been redeemed.

Nigeria approached the international capital market to source $300 million to finance part of the deficits in the 2017 budget as the nation was just recovering from a recession it slipped into a year earlier.

The exercise afforded citizens of the country living abroad to support the government with funds to execute some critical projects designed to revamp the economy.

Investors
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The diaspora bond was embraced by investors and to further boost the confidence of investors, the government redeemed the bond after paying the coupon rate to subscribers as advertised.

In the statement issued by the debt office, it was emphasised that the repayment of the notes on maturity shows the “commitment (of the Nigerian government) to honouring its debt obligations as at when due.”

“With the redemption of the $500 million Eurobond in January 2021 and recently, the $300 million diaspora bond, the FGN has increased investors’ confidence in its commitment and ability to fulfil its debt obligations at maturity, thereby reinforcing its presence in the international capital market,” it added.

As earlier stated, the central government issued the debt instrument on June 27, 2017, for a tenor of five years.

“In addition to the objection of raising funds for the government, it was an initiative to avail the Nigerian diaspora the opportunity to invest in their home country,” according to the DMO.

Source: https://businesspost.ng/

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