The Nigerian government has announced the appointment of two firms, Stanbic IBTC bank and Goldman Sachs, as advisers for the debut US$100 million Diaspora Bond issue, according to local media reports on Wednesday.
The private BusinessDay newspaper quoted the Debt Management Office (DMO) in the capital city of Abuja as saying it would also appoint book-runners for the bond sale.
In investment banking, a Book-runner is usually the main underwriter or lead manager, arranger or coordinator in equity, debt or hybrid securities issuances.
The DMO also announced the appointment of an indigenous law firm, Olaniwun Ajayi LP and Arnold & Porter LLP (International) as legal advisers.
The bond, which is to be issued in the International Capital Market, is to enable the government raise funds from Nigerians in the Diaspora to finance development projects in priority sectors of the economy.
PANA reports that because of the high level of interest in the Diaspora Bond, it has been increased to US$300 million, with the first tranche of US$100 million about to take off.