Nigeria Eurobonds Rally as $1.1bn Notes Expire Next Week
Nigeria’s Eurobonds traded positively in the international market amidst rising demand for African issuers’ papers. The average yield declined as Nigeria is set to settle its $1.1 billion in Eurobonds that is expected to expire next week.
The bargain hunting on Nigeria US dollar papers reversed last week’s mild sell-offs attributable to geo-political tensions, Anchoria Securities Limited told investors in a note
Hence, the average yield declined across the curve by -21 basis points (bps) to close at 7.77% compared with 7.97% recorded in the previous week.
The bullish performance in the secondary market is not unconnected to the recent successful US$2.3 billion dual tranche Eurobond listing by the FGN.
Investment firms reported that with US Government reopening this week, African Eurobonds Eurobond market traded mixed but bullish supported by improving global risk sentiment.
Bargain hunting was fuelled by optimism over the U.S. government shutdown resolution and sustained investors’ interest in safe haven assets.
Hence, strong investor demand pushed African issuers yields lower, led by the Nigeria 2025 listed recently, which dropped sharply mid-week, though sentiment cooled after the shutdown ended, prompting selective profit taking.
AIICO Capital said despite late-week caution from hawkish Fed commentary and profit-taking, the market closed positively, with Nigeria average benchmark yields down.
Outlook: Market is expected to maintain a cautiously positive sentiment, driven by improving debt market conditions and steady oil prices, but tempered by refinancing and sustainability risks.
It is worth highlighting that the 7.625 21-NOV-2025 Eurobond paper totalling US$1.12 billion is set to mature next week. Overall, Anchoria Securities Limited expects that the proceeds of the new Eurobond issuance will be used to offset this maturity.
“We expect sustained buying interest in the Eurobond market given expectations of a dovish monetary policy stance by the CBN,” the firm said. #. Zenith Bank Soars by 10% in Fresh Rally
