Despite worries about the naira, investors still buying Nigeria’s dollar debt
Investors may be fretting about Nigeria’s naira dilemma, but they’re still buying the country’s dollar debt. Africa’s most-populous nation returned to international capital markets for the first time in almost four years on Thursday, selling $1bn of 15-year bonds yielding 7.875%, below the initial guidance of about 8.5%. Investors placed more than $7.8bn of bids, according to a statement from the finance ministry. At marketing meetings in London, Los Angeles, Boston and New York over the past week, some investors were left frustrated by Nigeria’s lack of clarity on the naira, which they believe is overvalued even after the central bank removed a currency peg in June. Since then, the regulator has kept a tight grip on the exchange rate through trading restrictions. Still, the offer was sweet enough for investors such as Aberdeen Asset Management, which thinks an inevitable devaluation will help spark economic growth in the West African country. ‘Positive news’ "If they ever get aroun...
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