Nigeria’s Eurobonds Yield Falls Ahead External Borrowing
Nigeria’s sovereign Eurobonds yields fell at the international market ahead of the expiration of a $1.12 billion US dollar-denominated borrowing note issued in 2018.
Reflecting positive sentiment, foreign portfolio investors increased bets on the country’s US dollar as the government plans to raise $2.85 billion in the Q4 including $500 million in Sukuk.
Due to the trend in the market, the average benchmark yield declined by 20 basis points week on week to 7.59% on Friday, investment firms said in reports.
The African Eurobonds traded market experienced mixed activity throughout the week but maintained an overall bullish bias. The week began on a positive note, driven by optimism over easing U.S.–China trade tensions following President Trump’s remarks on the sustainability of proposed tariffs.
In a note, AIICO Capital Limited said investor sentiment became more cautious amid renewed trade concerns and ongoing global uncertainties.
However, a rebound in oil prices combined with softer-than-expected U.S. inflation data toward the end of the week helped restore risk appetite, sparking renewed buying interest across most maturities.
After a two-year hiatus, the Federal Government of Nigeria is gearing up for a second Eurobond issuance since 2022 with a plan to raise $2.35 billion and an additional $500 million Sukuk.
Of this amount, about USD 1.12 billion will be allocated to refinance the 7.63% Eurobond maturing in November 2025, originally issued in 2018, according to Meristem Securities Limited.
The move aimed at managing refinancing risk and sustaining Nigeria’s external debt profile.
Overall, Nigerian Eurobonds closed the month firmer, with the average benchmark falling by 35 basis points month on month, signaling improved investor confidence and steady appetite for higher-yielding African sovereign debt.
Eurobond sentiment is expected to stay mildly bullish in November, supported by Nigeria’s planned issuance and proactive refinancing of the 2025 maturity. Naira Climbs to N1475, FX Inflow Rises to $981m
