Key Issues

Nigeria commences issuance of diaspora bond

The Federal Republic of Nigeria has commenced a global offering of its first Diaspora Bond.

A statement by the Debt Management Office (DMO) released in Abuja indicated that Nigeria has filed a registration statement for the Bonds with the United States Securities and Exchange Commission.

Application will be made for the Bonds to be admitted to the official list of the UK Listing Authority and to the London Stock Exchange plc (the London Stock Exchange) for the bonds to be admitted to trading on the London Stock Exchange’s regulated market.

The bonds will be direct, general obligations of Nigeria, denominated in U.S. Dollars. The international Joint Lead Managers are Bank of America Merrill Lynch and The Standard Bank of South Africa Limited and the Nigerian Joint Lead Managers are First Bank of Nigeria Limited and United Bank for Africa Plc.

There will be a series of investor meetings in the United Kingdom, the United States and Switzerland commencing on June 13, 2017.

Pricing is expected to occur following the investor meetings, subject to market conditions.

The statement added that Bonds will be issued to investors in accordance with the arrangements in place between an investor and its stockbroker, private bank, wealth manager or other financial intermediary, including as to the appropriateness and/or suitability of an investment in the Bonds by an investor, the application process, allocations, payment and delivery arrangements.

Applications to purchase Bonds would not be made directly to the issuer.

The prospectus does not constitute an issue prospectus pursuant to Article 652a or Article 1156 of the Swiss Code of Obligations and the Bonds will not be listed on the SIX Swiss Exchange.

Consequently the prospectus may not comply with the disclosure standards of the listing rules (including any additional listing rules or prospectus schemes) of the SIX Swiss Exchange.

Accordingly, the Bonds may not be offered to the public in or from Switzerland, but only to a selected and limited circle of investors who do not subscribe to the Bonds with a view to distribution.

It also noted that such investors will be individually approached by the Joint Lead Managers from time to time.

Source: Voice of Nigeria