‘Di­as­pora bond’ launch ready to com­mence

The Star Early Edition - - BUSINESS REPORT -

NIGE­RIA has asked Gold­man Sachs and the lo­cal unit of South Africa’s Stan­dard Bank to ad­vise it on the sale of a de­but “di­as­pora bond” tar­geted at Nige­ri­ans liv­ing abroad, Stan­bic IBTC Bank said yes­ter­day. Such bonds are a form of gov­ern­ment debt that tar­gets mem­bers of the na­tional com­mu­nity abroad and Africa’s big­gest econ­omy first an­nounced plans to sell them in 2013 to raise be­tween $100 mil­lion (R1.34 bil­lion) to $300m. Gold­man Sachs and Stan­bic were due to man­age the sale, but the gov­ern­ment then did not ap­point any book run­ners be­fore an elec­tion in 2015 that brought Pres­i­dent Muham­madu Buhari to power. Nige­ria is in its first re­ces­sion in 25 years and needs to find money to make up for short­falls in its bud­get. Low prices for crude and mil­i­tant at­tacks in its oil-pro­duc­ing heart­land, the Niger Delta, have slashed its rev­enues. A fi­nance min­istry source said this month that the coun­try will look to is­sue a di­as­pora bond af­ter com­plet­ing a $1bn eu­robond sale. – Reuters

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.