The federal government plans to raise $300 million by selling a diaspora bond targeting Nigerians living abroad, one of the book runners on the deal, First Bank told Reuters on Tuesday. The bond, which will have a maturity of five to seven years, is expected to be issued by June, the bank said. Nigeria has asked Goldman Sachs and Stanbic IBTC Bank , the local unit of South Africa’s Standard Bank , to advise it on the sale of the maiden bond. It also appointed United Bank for Africa as one of the bookrunners on the deal.
Nigeria is the world’s fifth-biggest destination for international remittances with 5 million Nigerians living abroad sending money back to relatives, according to Western Union.