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

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.

According to the DMO’s website, Nigeria Eurobond Bonds and Diaspora Bond Closing Prices and Yields as at December 20, 2017

About The Debt Management Office 

The DMO was established on 4th October, 2000 to centrally coordinate the management of Nigeria’s debt, which was hitherto being done by a myriad of establishments in an uncoordinated fashion. This diffused debt management strategy led to inefficiencies. For instance, in the FMF alone, four different departments have functions for the management of external debt in the following format:

  • External Finance Department: responsible for all Paris Club debts and for the management of public debt statistics;
  • Multilateral Institutions Department: responsible for relationships with all multilateral institutions (excluding the African Development Bank and its subsidiaries such as ADF and the NTF, which is handled by the ABER Department). It is also responsible for managing and servicing multilateral debt;
  • Africa and Bilateral Economic Relations (ABER) Department: responsible for liaising with the ADB and its subsidiaries, ECOWAS, and all non-Paris Club bilateral creditors;
  • Treasury Department (OAGF): responsible for issuing mandate to the CBN for payment of all external debts;
  • Foreign Exchange and Trade Relations Department: responsible for issuing reconfirmation for payment externalization to the CBN and for documenting repayment and servicing of external debts;

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