LAGOS Aug 28 Nigeria is looking for an
international bank and a local lender to act as financial
advisers for a $100 million diaspora bond to be issued by the
end of the year, the Debt Management Office said on Wednesday.
The advisers will coordinate investor road shows and support
the bond's registration with U.S. and British authorities, the
The DMO expects to offer a coupon of around 350 basis points
above the five-year U.S. treasury bond for the bond, which will
have a 5-year tenor.
Nigeria is the world's fifth-biggest destination for
international remittances after China, India, the Philippines
and Mexico, with 5 million Nigerians living abroad sending money
back to relatives, according to Western Union.
Nigeria is increasing the amount it borrows overseas to
around 40 percent of all debt over the next three to five years,
from 12 percent, seeking lower funding costs.
Nigeria issued a $1 billion Eurobond last month and plans to
raise an additional 80 billion naira ($505 mln) in global
depository notes this year.
Bids for the diaspora bond adviser role are due on Sept. 26.
Citibank and Deutsche Bank DE> acted as advisers on
the Eurobond, which was four times oversubscribed.
Nigeria received $10 billion in remittances from citizens
living abroad last year, out of $40 billion sent back into the
continent in total, Western Union Co said in June.
(Reporting by Oludare Mayowa; Writing by Chijioke Ohuocha;
Editing by Joe Brock/Ruth Pitchford)