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Tag: Diaspora bond

  • $300m Diaspora bond will be used for capital projects, says Dabiri-Erewa

    The Senior Special Assistant to the President on Foreign Affairs and Diaspora, Mrs Abike Dabiri-Erewa, has affirmed that the net proceeds of the $300 million maiden Diaspora bond issued by the Federal Government will be used to finance capital projects.

    In a statement by her media assistant, Mr. Abdurrahman Balogun, Dabiri-Erewa urged all Nigerians to buy into the first-ever Diaspora offer and contribute to ongoing national developmental efforts.

    She said the net proceeds from the bond would be used to finance capital projects to enhance the economy’s development.

    Her office, she noted, has noted great enthusiasm among Nigerians in the Diaspora as the first ever Diaspora bond is being rolled out to the benefits of Nigerians.

    According to her, subscription to the bond is a unique way of lubricating the interest of Nigerians in the Diaspora to participate in the developmental projects being carried out by the Muhammadu Buhari administration.

    “We believe Nigerians abroad want to support development in Nigeria and such would be glad to invest in it,” Dabiri-Erewa said.

    The DMO had said the Diaspora bond would be admitted to trading on the London Stock Exchange’s regulated market.

    The bonds will be direct general obligations of Nigeria and will be denominated in US dollars. The international Joint Lead Managers are Bank of America Merrill Lynch and The Standard Bank of South Africa Limited. The Nigerian Joint Lead Managers are First Bank of Nigeria Limited and United Bank for Africa Plc. Pricing for the bond will, however, be made after series of investor meetings, subject to market conditions.

    Fitch Ratings had assigned a rating of ‘B+(EXP)’ to the Diaspora bond. Fitch stated that it assigned the rating after the receipt of final documents materially conforming to information already reviewed, adding that the rating was in line with Nigeria’s Long-Term Foreign-Currency Issuer Default Rating (IDR) of ‘B+’. The rating agency had issued a negative outlook on the country’s IDR.

    Fitch noted that the rating is sensitive to changes in Nigeria’s Long-Term Foreign-Currency IDR. It had earlier in January 2017 affirmed Nigeria’s Long-Term Foreign-Currency IDR at ‘B+’ and revised the outlook to negative. The Long-Term Local-Currency IDR was also affirmed at ‘B+’ with a negative outlook.

    Fitch had also assigned B+ ratings to Nigeria’s $1 billion Eurobond, which was overwhelmingly oversubscribed.

  • Fed Govt raises $300m from Diaspora Bond

    Fed Govt raises $300m from Diaspora Bond

    The Federal Government yesterday raised $300 million from its first Diaspora Bond issued in the International Capital Market . The fund was raised at the rate of 5.625 per cent for a tenor of five years, Debt Management Office (DMO) Director-General Abraham Nwankwo said.

    He said the Diaspora Bond was targeted at Nigerians in the Diaspora to enable them contribute to national development. The bond, he said, 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.

    The DMO boss said the bond issuance would attract foreign exchange into the country, serve as a viable way of diversifying government sources of funding, and a means of obtaining cheaper external financing.

    It will equally open a new and parallel source of liquidity for the country in the commercial window of the International Capital Market relative to the Eurobond, since this will be targeting different classes of investors.

    More than 50 per cent of the N2.21 trillion deficits in this year’s N7.44 trillion  budget will be funded through external borrowing.

    Finance Minister Mrs. Kemi Adeosun said Nigeria is the first African country to issue a bond targeted at retail investors in the United States, a market highly regulated by the United States Securities and Exchange Commission (US SEC). The only previous US SEC registration for an African country was targeted at institutional investors.

    She said the issuance of a bond registered by the US SEC provides an opportunity to access a wide range of investors. In addition, Nigeria can now routinely access funds from private banks and wealth managers in the US and European markets: this opportunity is not available to other developing countries that have only issued Eurobonds. To have received the approval of the US SEC indicates that the highest level of transparency and accountability in the economic process has been attained.

    She said the bond would impact the country’s credit, transparency and financial market development index rating. The Diaspora Bond is the first bond issued by an African sovereign registered with both the US SEC and the United Kingdom Listing Authority (UKLA) and targeted at retail investors.

    “With the successful issuance of the debut Diaspora Bond, Nigeria will establish a programme for raising funds from Nigerians in Diaspora to provide an avenue for continuous participation in the development of the economy by Nigerians in Diaspora and other Friends of Nigeria,”she said.

    In 2013, the country unveiled plans to sell diaspora bonds worth between $100 million and $300 million to Nigerians living abroad. But the government did not appoint a book runner to actualise the plan.

    According to the bond issuance plan, a road show was led by Nwankwo. The DMO boss led the government’s delegation to the roadshow because the Finance minister stayed home to deal with the newly signed N7.44trillion 2017 budget. The budget was signed by Acting President Yemi Osinbajo on June 12.

     

  • Presidency urges Nigerians to buy into $300m Diaspora Bond

    Presidency urges Nigerians to buy into $300m Diaspora Bond

    Senior Special Assistant to the President on Foreign Affairs and Diaspora Abike Dabiri-Erewa has urged Nigerians to take advantage of the first ever 300 million dollars Diaspora bond.

    Dabiri-Erewa, who made the call on Monday in Abuja in a statement by her Media Assistant, Mr Abdurrahman Balogun, asked Nigerians to buy into the offer.

    She noted that the Debt Management Office (DMO) had announced the commencement of a global offering of Nigeria’s first Diaspora Bond.

    She said the DMO also filed a registration statement for the bonds with the U.S. Securities and Exchange Commission.

    The presidential aide said that that the Diaspora bond would be used to raise funds from Nigerians in the Diaspora to finance capital projects.

    According to her, the bond will provide an opportunity for them to participate in the development of the country.

    She said her office as well as the Nigerians in the  Diaspora was excited as the first ever diaspora bond was being rolled out to the benefits of Nigerians.

    The SSA said it was a unique way of lubricating the interest of Nigerians in the Diaspora to participate in the developmental projects being carried out by the Muhammadu Buhari administration.

    She recalled that the Minister of Finance, Mrs Kemi Adeosun, in February promised that the Diaspora bond will soon be rolled out by the DMO.

    She said that the DMO had also said that application would be made for the bonds to be admitted to the official list of the UK Listing Authority and the London Stock Exchange Plc.

    The office, according to her, said this is to ensure that the bonds were admitted to trading on the London Stock Exchange’s regulated market.

    “The bonds will be direct general obligations of Nigeria and will be denominated in U.S. dollars.

    “The international Joint Lead Managers are Bank of America Merrill Lynch and The Standard Bank of South Africa Limited.

    “The Nigerian Joint Lead Managers are First Bank of Nigeria Limited and United Bank for Africa Plc,’’ she quoted DMO as saying.

    She said that the DMO added that there would be a series of investor meetings in the UK, the U.S. and Switzerland from June 13.

    She said that the office explained that pricing was expected to occur following the investor meetings and subject to market conditions.

    Dabiri-Erewa said that as part of measures to fund capital expenditures, the Federal Government had in February announced its offering of one billion dollars euro bond.

    The bond, she said, was under its newly-established one billion dollars Global Medium Term Note programme.

    “We are very excited that the National Assembly has approved the Diaspora Bond.

    “We believe Nigerians abroad want to support development in Nigeria and such would be glad to invest in it,” she said.

  • Nigeria to issue first Diaspora bond, says DMO

    Nigeria to issue first Diaspora bond, says DMO

    The Debt Management Office (DMO) yesterday announced the commencement of a global offering of Nigeria’s first Diaspora Bond.

    DMO made this known in a statement, the News Agency of Nigeria, said on its website. It said the nation has filed a registration statement for the bonds with the U. S. Securities and Exchange Commission.

    It said the application would be made for the bonds to be admitted to the official list of the UK Listing Authority and the London Stock Exchange Plc.

    The office said this was to ensure that the bonds were admitted to trading on the London Stock Exchange’s regulated market.

    “The bonds will be direct general obligations of Nigeria and will be denominated in U.S. dollars.

    “The international Joint Lead Managers are Bank of America Merrill Lynch and The Standard Bank of South Africa Ltd.

    “The Nigerian Joint Lead Managers are First Bank of Nigeria Limited. and United Bank for Africa Plc,” it said.

    It said there would be a series of investor meetings in the UK, the U. S. and Switzerland from June 13.

    The office said that pricing was expected to occur following the investor meetings and subject to market conditions.

    It said that Diaspora bond was used to raise funds from Nigerians in the Diaspora to finance capital projects and provide an opportunity for them to participate in the development of the country.

  • ‘Come home and be billionaires’ FG tells Diaspora Nigerians

    ‘Come home and be billionaires’ FG tells Diaspora Nigerians

    The Federal Government has called on Nigerians in the Diaspora to return home and seize the various economic opportunities to make billions of naira.

    The Minister of Science and Technology, Dr Ogbonnaya Onu made the call at an investment forum organised in New York by his ministry for Nigerians in the U.S.

    Onu explained that various investment opportunities currently existed and were waiting for them at home, challenging them to take it before they were given to foreigners.

    The former Governor of Abia from 1992 to 1993, informed the Diaspora Nigerians that various research products with opportunities to yield billions of naira, were waiting for them at home.

    “We are asking you to come and be billionaires. That is what we are asking you, not millionaires. Come and make billions.

    “We will give you products of research at nothing or little cost to you because it would be nice for the agency that has done this research to get some little returns.

    “It would also be nice for the scientists, engineers who were involved in doing this research just to get something, that’s all but it would be very small.

    “So we give it (research products) to you, knowing that you will keep the money in Nigeria, you will help employ Nigerians and you will help to grow our Gross Domestic Product (GDP).

    “That is our interest; that is the reason why we are here,” the minister said.

    Onu, who was the National Chairman of the defunct ANPP, explained that the agencies under the ministry had already developed the research products through various stages of tests and trials.

    According to him, we are asking Nigerians in the Diaspora that thinks home, come and take the researches that we have done

    .

    “We have taken them to a level where you can now immediately convert them into products, make money out of it; that is the message.”

    The minister, who returned to Nigeria from the U.S. in 1981, said as a policy, researchers would not be involved in the commercialisation of the research products to enable them concentrate on innovation rather than money.

    He said that one of the agencies under the ministry was already working on a cure for epilepsy and was only awaiting the final stages of trials by the National Agency for Food Drugs Administration and Control (NAFDAC).

    “We are working on a cure for epilepsy; there is a drug that one of our agencies is working on, it is being tested now.

    “And we know that epilepsy is a disease that is worldwide and this agency will not on its own commercialise this drug.

    “For NAFDAC to give its approval, there are so many stages of trials and tests that the drug has to pass through.

    “But at the time that it must have satisfied all these conditions, we don’t want our researchers to go into commercialisation.

    “Because if we do that, they would no longer continue with research; everybody would prefer to go and make money,” he said.

  • Adeosun: $300m Diaspora bond out in March

    Adeosun: $300m Diaspora bond out in March

    he Minister of Finance, Mrs Kemi Adeosun, yesterday said the $300 million Diaspora bond approved by the National Assembly would be rolled out in March.

    Mrs. Adeosun spoke yesterday when the Senior Special Assistant on Foreign Affairs and Diaspora, Mrs Abike Dabiri-Erewa,  visited her in Abuja.

    “The Diaspora bond which the National assembly has approved where Nigerian in the Diaspora who wants to invest can key into, we are hoping that by March the Diaspora bond will be rolled out.

    “Beyond that of course, the investment opportunities in Nigeria are very huge, a lot of Diasporans who are interested in investing at home are encouraged to do so.

    “Government is putting in place a lot of incentives, such as infrastructures; and also creating conducive environment for them to thrive. We are encouraging them to come back home and join the trend,” she said.

    Mrs. Adeosun noted that the Ministry of Trade and Investment was working  to reduce the bottlenecks hindering people from doing businesses.

    Mrs. Adesoun, who was optimistic that 2017 would be a better year for Nigeria, said the country was going to overcome its challenges and all hands must be on deck to restore the economy.

    “We are very confident that Nigeria is going to overcome its challenges; we have to ensure that we invest and ensure that the economy is moving,” she said.

  • $300m diaspora bond out in March – Adeosun

    $300m diaspora bond out in March – Adeosun

    The Minister of Finance, Kemi Adeosun, on Tuesday said the $300 million diaspora bond approved by the National Assembly will be rolled out in March.

    Adeosun spoke when the Senior Special Assistant to the President on Foreign Affairs and Diaspora, Mrs. Abike Dabiri-Erewa, paid her a courtesy visit in Abuja.

    “We are hoping to roll out by March, the diaspora bond where Nigerian in the diaspora who wants to invest in the country can key into.

    “Beyond that of course, the investment opportunities in Nigeria are very huge, a lot of diasporan who are interested in investing at home are encouraged to do so.

    “Government is putting in place a lot of incentives such as infrastructures and also creates conducive environment for them to thrive. We are encouraging them to come back home and join the trend,” she said.

    Adeosun noted that the Ministry of Trade and Investment is working on ease of doing business and to reduce the bottlenecks, bureaucracy and a lots of red tapes hindering people from doing businesses in the country.

    Adesoun, who was optimistic that 2017 would be a better year for Nigeria, said the country is going to overcome its challenges and all hands must be on deck to restore the economy.

    “We are very confident that Nigeria is going to overcome its challenges. We have to ensure that we invest and ensure that the economy is moving,” the minister said.

     

     

  • Reps approve $300m Diaspora bond

    The House of Representatives has approved President Muhammadu Buhari’s request to increase the Diaspora bond from $100 million Euro bond to $300 million Euro bond as part of Federal Government’s borrowing plan.

    The approval was given during consideration of report of the Ibrahim Babangida-led ad hoc Committee mandated to work on the presidential request at the Committee of the Whole House on Tuesday.

    According to the report, the Diaspora bond which  was captured in federal government’s external borrowing plan 2016-2018, was aimed at diversifying government sources of funding and taking advantage of Nigeria large Diaspora population.

     

  • Buhari urges Reps to increase Diaspora Bond to $300m

    Buhari urges Reps to increase Diaspora Bond to $300m

    President Muhammadu Buhari yesterday requested the House of Representatives to approve an increase in the amount to be raised through the Diaspora Bond from the International Capital Market from $100 million to $300million.

    According to Buhari, the Senate in the 7th Assembly approved the request which emanated from former President Goodluck Jonathan’s regime, but the House did not.

    “Without the resolution authorising the increase in the proposed issuance to $300 million, Nigeria would be constrained by our own laws and the requirements of International Capital Market (including the regulations of the audited States’s Security and Exchange Commission) to issue only $100 million,” he said.

    The letter addressed to Speaker Yakubu Dogara further reads: “The Honourable Speaker may wish to recall that the Federal Government in its efforts to mobilise capital to finance critical infrastructure while diversifying its funding sources and encouraging the Nigerian Diaspora to contribute to the development  of the economy through investment in Capital Projects in priority sectors of the economy, sought and obtained the approval of the National Assembly (NASS) in March, 2013 to issue a $100 million Diaspora Bond to Nigerians in Diaspora.

    “In furtherance of this development and in conformity with the law, the former president approved and submitted a request to the two chambers of the NASS in December 2013 for an increase in the issuance amount from $100 million to $300 million.”

    Buhari said the  request to the NASS was in line with Section 21(1) of the Debt Management Office (Establishment etc) Act 2003, which he quoted as stating that “No external loan shall be approved or obtained by the Minister unless its terms and conditions shall have been laid before the National Assembly and approved by its resolution.”

    The president reiterated the three reasons given the 7th NASS for an increase to $300million which he said are: “The huge amount of capital needed to abridge the infrastructural gap thereby supporting growth and development; the need to optimise the cost of issuance relative to the amount proposed to be raised, since the  some costs, such as marketing expenses, fees to some transaction parties and the preparation of a prospectus will be the same, regardless of the amount issued; and the high interest being shown by the a Nigerian Diaspora in the proposed bond.”

  • Senate endorses Jonathan’s $300m Diaspora bond request

    Senate endorses Jonathan’s $300m Diaspora bond request

    The Senate Tuesday gave President Goodluck Jonathan the nod to raised $300 million Diaspora Bond from the International Capital Market.

    The approval came over one year after President Jonathan sought the approval of the Senate to raise the fund.

    The presidency increased the bond request from initial $100 million to $300 million.

    Chairman, Senate Committee on Local and Foreign Debts, Senator Ehigie Uzamere, presented the report of the joint Committee on Local and Foreign Debt and Finance which recommended that the Senate should approve the request.

    The joint Committee was mandated by the Senate to consider the request for the increase in the amount from $100 million to a maximum of $300 million to be raised through the Diaspora Bond from the International Capital Market.

    Uzamere said that the Senate at its sitting on 4th February, 2014 considered Executive Communication from Mr. President for an increase in the amount to be raised through the Diaspora Bon from the International Capital Market and referred same to the joint committee.

    He noted that the proposed increase in the Diaspora Bond is to fund critical infrastructure in the country.

    He added that the proposed increase is believed will accommodate a greater number of Nigerians in the Diaspora who have interest to invest in the development of the country.

    Uzamere informed the Senate that the provisions of Sections 41, 42, 44, and 47 of the Fiscal Responsibility Act, 2007 prescribed conditions for borrowing and verification of compliance limit upon which approval of the National Assembly will be premised.

    He noted that based on the submissions by the Director General, Debt Management Office and several interactions the joint committee had, the committee observed as follows:

    That the $100million Diaspora Bond as passed in the Borrowing Plan 2012-2014 is too small considering the life of Nigerian Diaspora.

    That the larger and present amount of $300 million is consistent with the Public Debt Management Strategy.

    That with the dwindling revenue from crude oil sale, it has become necessary to diversify sources of funding for government.
    That the Diaspora Bond is necessary to create more space in the domestic market for other borrowers particularly, private firms.

    That the Federal Government plans to utilize the proceeds of the Diaspora Bond in the construction of key capital projects in priority sectors of the economy including the second Niger bridge, the Lagos-Ibadan expressway and infrastructure for the Abuja Medical City.

    The joint committee concluded that the concept of raising funds through Diaspora Bond has been employed by several countries over the years with tremendous success.

    The issuance of Diaspora Bond, the committee said, will afford the Diasporan the opportunity to invest in the development of the country while earning good returns for their investment.

    The committee also said that it believes that the projects the Federal Government has chosen to utilize the funds are critical infrastructure that will impact on the economy positively.

    When the Senate President, David Mark, put the question whether the Senate will approve the request, the endorsement of the request was overwhelming.

    Mark commended the joint committee for a job well done.