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FG to issue $300m Diaspora bond

By on July 2, 2014

The Federal Government is planning to issue a bond of $100m-$300m aimed at the country’s Diaspora by the end of the year, the Director-General, Debt Management Office, Dr. Abraham Nwankwo, has said.

“We are still working on it, it will be a minimum $100m and up to $300m,” Nwankwo told Reuters on the sidelines of an Africa debt forum on Monday, adding the bond would come “before the year ends”.

The Federal Government had chosen Stanbic IBTC and Goldman Sachs as lead managers of the Diaspora bond in April.

Nwankwo said the bond would be sold only to offshore Diaspora investors, with no on-shore portion.

Nigeria has no current plans for a regular sovereign dollar bond, he added.

The DMO had last week said the Federal Government would raise between N260bn and N350bn ($1.60bn-2.15bn) in the third quarter by selling bonds with maturities ranging from three years to 20 years.

The DMO said a new 20-year bond would be sold in July while all other issuance would be re-openings of outstanding bonds.

Meanwhile, the naira was unchanged at N162.90 to the dollar at Monday’s market close, supported by dollar sales from the local unit of Royal Dutch Shell, according to Reuters.

The naira had initially eased to N163.05 against the United States dollar, dealers said, but recovered after Shell sold an undisclosed amount of dollars to some lenders.

“Demand was balanced with dollar flow from Shell … to keep the naira at the same level it closed on Friday,” one dealer said, adding that the local units of two foreign banks were buying hard currency for their clients on Monday.

Dealers expect the naira to remain stable this week, trading around the N163 mark on possible central bank intervention as more oil companies make their regular month-end oil dollar sales.

 

 

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