The Diaspora Bond
was launched and over-subscribed--it met the demand of a new class of investors in the nation.
Addressing a day-long consultation seminar organised by SBI, Pakistan on the pre-feasibility study for the Diaspora Bond
here at Garrison Services Club and later talking to reporter, he said work on pre-feasibility study of Diaspora Bond
has been initiated and expressed optimism to complete this study by December 2013.
Diaspora investments take various forms--from direct investment to the purchase of diaspora bond
("a retail saving instrument marketed only to migrants").
Afreximbank will take 6 months bridge finance gap of $100 million towards the CBZ Bank $200 million Diaspora bond
to provide funds for companies in urgent injection.
Nigeria, for example, is in discussions with potential transaction advisers for a $100m diaspora bond
to raise funds to finance various capital projects as part of the government's domestic transformation agenda.
For the buyer, a 4% return on a diaspora bond
compares favourably with the 0.
Nigeria is looking for an international bank and a local lender to act as financial advisers for a $100m diaspora bond
The government plans to conclude the $100 million Diaspora bond
by December this year, added the Minister.
Drawing lessons from diaspora bond
issuances in Israel, Ethiopia and India, the paper, entitled Diaspora Bonds
: Some Lessons for African Countries , argues that tapping migration wealth could be an effective means of funding development on the continent.
The finance deputy minister Miles Sampa has stated that the government and Securities and Exchange Commission (SEC) must think lifting of US$100 million from non-resident Zambians via a Diaspora bond
The Bank will develop Agribusiness Diaspora Bonds
to securitize remittance flows for investments in African agriculture and agribusiness; it will accelerate financing to the agriculture and agribusiness sector through private equity funds; and it will leverage sovereign wealth funds and pension funds to support the long-term financing needs of the agricultural sector, especially for critical infrastructure development.
It suggests that among other financial instruments, Pakistani diaspora can be asked to invest in Pakistan Diaspora Bonds
, which should also be available to all investors and persons of other nationalities.