Nigeria

Nigeria last week priced the first ever SEC-registered diaspora bond, raising $300m from a novel funding source made up of Nigerian expatriates. And continuing its bid to diversify its funding kit, the sovereign has now turned its sights to a naira denominated sukuk.

Nigeria’s debut diaspora dollar bond sold off sharply in secondary trading as the decline in oil prices weighed on investor sentiment.

Atlas Mara, the London-listed company co-founded by Bob Diamond that invests in African financial services, announced a $200m equity capital raising on Wednesday, most of which will be taken up by Fairfax Africa Holdings Corp.

Nigeria priced sub-Saharan Africa’s first diaspora bond comfortably inside initial indications on Tuesday after two days of bookbuilding. However, the bonds, which were printed at 5.625%, had widened to nearly 6% by midday Tuesday and have stayed around that level.

Etisalat has been given until Friday to transfer all its shares in Etisalat Nigeria to a syndicate of 13 Nigerian banks, after talks on restructuring a $1.2bn loan from 2013 fell through.

It is tale of the haves and have nots in EM this week as Argentina’s surprise 100 year bond received a $10bn book but Nigeria’s diaspora bond underwhelmed and prompted a widening of the sub-Saharan African sector.

Emerging market governments must lead the way in green bonds to encourage corporates to enter the market around the world, according to Rahul Ghosh, a senior credit officer at Moody’s.

Etisalat Nigeria is in the “advanced stage” of its negotiations with 13 local banks over the restructuring of a $1.2bn loan taken out in 2013, according to the company.

Nigeria is offering around a 30bp premium at price talk for its first diaspora bond as deal watchers asked whether it will really be able to attract $300m of retail investment.

EM investors have had plenty to play for this week with a boost to Turkish GDP buoying support for Yapi Kredi, and more Russian supply. Qatar remains one to watch however, though the country’s fundamentals have not changed.

Nigeria on Wednesday added to a building pipeline of African credit with a diaspora bond, the first of its kind from a sub-Saharan African country.

Nigeria is asking for funding support from its nationals living abroad with a new SEC-registered trade.