Nigeria Redeems $300m Diaspora Bond Amid Worsening Revenue

The Debt Management Office (DMO) says Nigeria has redeemed a $300m diaspora bond, which matured on June 27, 2022.

In a statement published on its website, the DMO said that the bond was issued on June 27, 2022, for a tenure of five years in the International Capital Market.

The DMO added that the proceeds from the bond were partly used to finance the deficit in the 2017 Appropriation Act.

It also assured bond investors of Nigeria’s commitment to honouring its debt obligation, urging the Nigerian Diaspora to invest more in the country.

The statement read in part, “Nigeria has again demonstrated its commitment to honouring its debt obligations as at when due by the redemption of the $300m Diaspora Bond which matured on June 27, 2022.

“The Diaspora Bond was issued on June 27, 2017, for a tenure of five years in the International Capital Market and the proceeds were used to partly finance the deficit in the 2017 Appropriation Act.

“In addition to the objective of raising funds for the Government, it was an initiative to avail the Nigerian Diaspora the opportunity to invest in their home country. With the redemption of the $500m Eurobond in January 2021 and recently, the $300m 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.”