FG to start roadshow for diaspora bond sale

FG to start roadshow for diaspora bond sale
Mr. Abraham Nwankwo, Director General of the DMO

The Federal Government will start an international roadshow next week for the sale of a diaspora bond, the Debt Management Office said on Thursday.

The DMO said the government had named Bank of America Merrill Lynch and Standard Bank of South Africa as joint lead managers for the sale.

The country first unveiled in 2013 plans to sell diaspora bonds worth between $100m to $300m from Nigerians living abroad. But the government at the time did not appoint a bookrunner until an election brought the opposition into office.

A roadshow will start on June 13 with meetings planned in Britain, Switzerland and the United States, the debt office said in a statement.

“Nigeria has filed a registration statement for the bonds with the United States Securities and Exchange Commission,” the statement said.

The DMO said the bonds would be listed in London but gave no price expectations, Reuters reported.

Nigeria, grappling with its first recession in 25 years that was largely brought on by low oil prices and the impact of attacks on energy facilities in the Niger Delta, has set a budget of N7.44tn  this year.

The country expects a budget deficit of about N2.21tn in 2017 as it tries to spend its way out of a recession, with more than half the deficit to be funded through external borrowing.

The Federal Government successfully raised $1bn in February and $500m in March from Eurobond sales and is planning more external borrowing to plug the gap in this year’s budget.

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