Nigerian President Goodluck Jonathan asked lawmakers to raise the ceiling for the country’s diaspora bond to $300 million from $100 million because he anticipates higher subscriber interest than initially thought.

“There is an indication that the $100 million could be inadequate relative to the demand expected from investors for the bond,” Jonathan said in a letter to the Senate released to reporters yesterday in the capital, Abuja. “Based on the level of subscription expected, I wish to request for the National Assembly’s approval to increase the amount to be raised.”

Selling less than $300 million may disappoint subscribers without achieving the desired positive effect on Africa’s biggest oil producer and second-largest economy, Jonathan said. When the diaspora bond was announced in August, the Debt Management Office said the funds would be used to finance capital projects.

Nigeria returned to international bond markets for the first time in two years in July, issuing $1 billion in Eurobonds to fund power projects in an economy set to grow 6.7 percent this year, according to the World Bank. On Jan. 15, Abraham Nwankwo, director general of the debt agency, said they would probably seek an increase of the diaspora bond size to as much as $250 million.

Source: Bloomberg (by Dulue Mbachu)