Diaspora Bond: Nigeria Pays $300 Million Debt – DMO

The Debt Management Office (DMO) has said the Federal Government of Nigeria redeemed a US$300 million diaspora bond on June 27, 2022.

According to a statement published on the agency’s website, the diaspora bond was issued on June 27, 2017 in the International Capital Market for a 5-year tenor.

Part of the fund was used to finance the deficit in the 2017 Appropriation Act. The issuance also gave Nigerian Diaspora the opportunity to invest in their home country.

DMO explained that by redeeming the bond as when due, the Federal Government has demonstrated commitment to honouring its debt obligations.

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 tenor 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.”