Nigeria has made a successful foray into the restricted US
and UK retail bond markets with Africa’s first
diaspora bond – but at huge regulatory compliance
This is the first time that a bond has been approved both by
the Securities & Exchange Commission (SEC) and the UK
Listing Authority (UKLA) under the same document. The issuer is
also only the second sub-Saharan African country to have gone
through SEC registration. While being the first African
sovereign to have issued SEC-approved notes, South Africa
targeted institutional rather than retail investors.
"This necessitated the further updating of the disclosure
once work did start again in order to take account of the
relevant developments in the meantime," said a source.
But counsel involved in the deal point to several regulatory
challenges mainly arising from the sovereign
issuer’s plan to sell its debut diaspora bond to
US and UK retail investors. ...