Yields on Nigeria’s 2023 Eurobonds have dropped from a record 9.37 percent on Jan. 15, a gain of 23 percent for bondholders in the period.
That’s the lowest in 15 months and the rally may continue as the OPEC deal reached last week boosts oil prices and eases concerns over dollar shortages in Africa’s largest economy.
Global market conditions remain supportive for Eurobond issuers.
There has been strong investor appetite for emerging market USD bonds in recent months which contributed to a move lower in Eurobond yields.
Supply from Sub-Sahara Africa has however been extremely thin which should assist prospective new issues.