Nigeria may sell $2.5bn of eurobonds to refinance domestic debt
Abuja/Johannesburg/Lagos— Nigeria may sell $2.5bn of eurobonds in the first quarter to refinance domestic debt and wants to start talks with JPMorgan Chase about being reinstated to its local currency emerging-market bond index, according to a government official. The issuance would complete a dollar debt programme that started with selling $3bn of eurobonds in November, according to debt management office director-general Patience Oniha. The yield on dollar bonds due in November 2027 have fallen about 60 basis points since they were issued late last year to 5.92%, almost eight percentage points lower than the yield on similar maturity local currency government bonds. President Muhammadu Buhari’s administration is selling more foreign debt to help reduce the financing burden from paying double-digit yields on local-currency bonds. This would help free up funds to increase investment in infrastructure and spur economic growth. The International Monetary Fund (IMF) forecast the econom...
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