The Legal Requirements of Selling Diaspora Bonds in the US


Are you a government minister interested in selling bonds to your American diaspora community?  If so, you will need to know about how the US Securities and Exchange Commission regulates the bond market and what they require.

Dilip Ratha, a World Bank Lead Economist and Manger of the Migration and Remittances Unit, wrote this informative post about the legal requirements of selling diaspora bonds in the US on his blog, People Move.


Of late I have been receiving a number of questions on legal requirements for selling retail diaspora bonds in the US. I am enclosing below some general information, but with the caveat that I am not a lawyer and I may be wrong. In the end reputable law firms (rather than economists like me) ought to be consulted.

  • Retail diaspora bonds (even if they are a part of a larger institutional offering) should be registered under SEC Securities Act 33 Schedule B.
  • It can take 2-3 months to complete registration.
  • There will be detailed disclosure requirement for the prospectus at the time of registration, and also annual reporting during the life of the bond.
  • Issuers can market on their own or have a captive broker-dealer or hire broker-dealers.
  • Issuers of diaspora bonds must work with some reputed law firms in the US. Legal cost can be significant.