LAGOS, Aug 28 (Reuters) - 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 DMO said.
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)