DMO Lists $300m Diaspora Bank, $3bn Eurobonds on NSE, FMDQ OTC

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Obinna Chima

The Debt Management Office (DMO) wednesday announced that it will list the $300 million Diaspora Bond and $3 billion Eurobonds on the Nigerian Stock Exchange and Financial Market Dealers Quotation Over-the-Counter (FMDQ OTC) Securities Exchange respectively today.

The Diaspora Bond was issued in June while the $3 billion Eurobonds were issued in November at the International Capital Market (ICM).

Both offers were issued with significant features with the $300 million Diaspora Bond was unveiled with five- year tenor and 5.625 per cent coupon.

On the other hand, the Eurobonds issuances came in two tranches of $1.5 billion 10-year offer with 6.50 per cent coupon and another $1.5 billion 30-year offer priced at 7.625 per cent coupon.

According to a statement from the DMO, listing the $300 million Diaspora Bond and $3 billion Eurobonds on the NSE and FMDQ OTC would help increase the number and range of securities available in the domestic capital market.

Such exercise, it added, would deepen the market and promote financial inclusion.

Furthermore, it stated that the exercise wouldgive more visibility to the domestic debt capital market which will be beneficial for attracting capital from local and foreign investors.

“Also, for the Eurobonds, which remains a sovereign security, the information it would provide such as coupon, yield and tenor will serve as benchmarks for corporates who may issue Eurobonds in the ICM,” the debt office added.

The DMO expressed its commitment towards meeting the needs of its diverse group of investors as well as supporting the development of the domestic capital market.

It said the listing of the Diaspora Bond and the Eurobonds were examples of the various ways in which it exercises its borrowing powers on behalf of the Federal Government of Nigeria to support the development of the domestic capital market in particular.

The exercise, it added, would also create opportunities for the private sector to access long term funds in the domestic and international capital market.