Nigeria’s Eurobonds Yield Rises, $1.1bn Notes Expire in Nov.
Nigeria’s sovereign Eurobond yield surges in the international market as foreign portfolio investors (FPIs) rebalance their positions against African issuers ahead of repayment.
The sovereign borrowing instrument for longer duration was sold, causing its associated yield to increase, reflecting shifting global risk sentiment and uncertainty around a potential U.S. shutdown
The markets weighted Nigeria’s sovereign credit and macroeconomic positions. The negative sentiment became necessary as offshore investors sought to put Nigeria’s creditworthiness to test ahead of expiration of $1.1 billion Eurobond next month.
In November, the sovereign Eurobond worth US$1.1 billion is expected to expire, and this may require the government to borrow to settle its international obligation.
Already, Nigeria plans to raise $2.3 billion from external market. The proposed Eurobonds is to support budgetary needs and undertake liability management operations.
The latest sell pressure in the international market reflects sentiment, with foreign portfolio investors’ adjustment driven by desire to optimise returns rather than a distortion to macroeconomic direction of the issuer.
While some African issuers traded in opposite directions, offshore investors’ trimmed interest in Nigeria’s US dollar notes, replacing with shorter duration borrowing papers.
The market anticipates trading activities to be soft as global investors respond to shifting market dynamics while players look forward to the NOV-25 maturity.
On this note, fixed income market analysts said volume of US dollar flows in Nigeria will be tightened as the authority sets to fulfil obligations to offshore investors in possession of borrowing papers.
With the riskoff sentiment, the average Eurobond yields rose by 0.17% week-on-week to settle at 8.06%, according to Cowry Asset Limited.
The market opened on a bearish note, as profit-taking and unclear data led to modest yield increases. By midweek trading remained cautious, with mild sell-offs despite the selective interest in short-dated bonds (NIG NOV-2025), which stayed.
Sentiment turned briefly positive on Thursday following dovish signals in the U.S. Fed minutes, sparking renewed demand across the curve. However, the rally was short-lived, as falling oil prices and renewed risk aversion triggered another round of profit taking on Friday.
Overall, the market closed weaker. African Eurobonds are expected to trade with a cautiously optimistic tone next week, supported by rate cut spreads and renewed issuance interest, though sentiment may be tempered by external risk factors.
Also, the latest development from FTSE Russell to keep Nigeria on the watchlist for a possible reclassification to frontier market status could further boost investor sentiment for improved liquidity in the Eurobond space. # Nigeria’s Eurobonds Yield Rises, $1.1bn Notes Expire in Nov. Ethereum, Dogecoin, XRP Post Top Weekly Gains
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