African Eurobonds Issuers’ Yields Ease in Fresh Rally
The average yield on Nigerian Eurobonds declined in the international debt market amid rising demand from oil-linked African issuers.
Reversing the previous bearish sentiment, the African Eurobond market shown positive trends, driven by investors reacting to recent price declines and a slowdown in their shift to safer assets.
Angola, Egypt, and Ghana Eurobonds attracted offshore investors’ attention, with notable demand for Nigerian US dollar bonds in the international market.
Yields across Nigeria’s Eurobond curve trended lower, with traders noting significant increases in U.S. Treasury yields that reflect a global shift in the debt market amid ongoing conflicts in the Middle East.
At the short end of the curve, the yield on Nigerian Eurobonds maturing in March 2028 eased by 5 basis points to 6.00%, while the yield on those maturing in November 2027 dropped by 4 basis points to 5.81%.
Mid-term Eurobonds also showed bullish trends, with the January 2036 papers decreasing by 6 basis points to 7.68%. Similarly, the February 2032 and September 2033 bonds each fell by 3 basis points, closing at 7.10% and 7.31%, respectively.
Long-term Euronbonds continued the rally, with yields on January 2046 and November 2047 bonds easing by 4 basis points each to 8.36% and 8.25%, respectively.
The yield on the September 2053 Eurobonds dipped slightly by 2 basis points to 8.42%. Overall, the average benchmark yield on Nigerian Eurobonds declined by 3 basis points, closing at 7.22%, according to a report from AIICO Capital Limited.
This decline reflects stronger demand and increased confidence among global investors in Nigeria’s dollar-denominated sovereign debt.
Fixed-income traders at AIICO Capital expect the Eurobond market to trade mixed on Thursday, given the recent rise in yields and updates on tensions in the Middle East. #African Eurobonds Issuers’ Yields Ease in Fresh Rally Analysts Estimate 25% Upside for Access Holdings
