Three weeks after its issue, Nigeria’s first Diaspora Bond today started trading on the London Stock Exchange (LSE).

The five-year bond with a coupon of 5.625%, is the first from an African country that is registered with both the UK Listing Authority (UKLA) and the U.S. Securities and Exchange Commission, and targeted at retail investors, according to a statement from LSE.

“We are delighted to welcome Nigeria’s third capital raising this year on London Stock Exchange. The innovative structure of the bond allows, for the first time, retail investors to participate in the financing of infrastructure projects as part of the development of Nigeria’s economy. The successful listing reinforces London Stock Exchange’s position as a strong partner for Nigeria and as a leading global venue for raising debt finance,” said Ibukun Adebayo, Head of Middle East, Africa and South Asia, International Markets Unit, London Stock Exchange.

The issuance of the bond follows the country’s success in raising $1.5 billion from a 15-year Eurobond earlier this year. Interest from retail investors around the world on the bond was high indicating confidence in Nigeria’s economy. It was 130% subscribed and raised a total of $300 million. Proceeds will be used to fund infrastructure projects in the country.

“Today, Nigeria records another milestone in international capital markets as it lists its debut Diaspora Bond on London Stock Exchange. The opening of this source of funding for Nigeria and the listing of the Diaspora Bond on London Stock Exchange will ensure that the opportunity to invest in Nigeria will be available to a wider range of investors especially Nigerians in Diaspora who wish to contribute to the development of the country and also earn returns,” Abraham Nwankwo, Director General of the Debt Management Office (DMO), commented for his part.

Anita Fatunji