Having been in the pipeline for some time now, Nigeria’s $300m London Stock Exchange-listed diaspora bond went down very well with investors, being 130% oversubscribed. Having shared similar successes with the issuance of eurobonds, could diaspora bonds pave the way forward for a more successful Nigerian economy in the years to come?
What Is a Diaspora Bond?
A diaspora bond is a bond issued by a country that targets investment from nationals living abroad (hence diaspora). It acts as a patriotic way for nationals to invest in the future of their home country. Migrants are usually offered the bond at a discount rate.