Nigeria Says Bond Due 2024 to Be Added to JPMorgan Index

Nigeria’s 10-year bonds will be added to the JPMorgan Chase & Co.’s (JPM) benchmark emerging-market index series, the nation’s debt management agency said.

The debt due 2024 will become part of the gauge by Aug. 29, Patience Oniha, executive director in charge of market development at the Debt Management Office, said by phone from the capital, Abuja. The inclusion reaffirms the strength of the Nigerian bond market, she said

JPMorgan added the West African nation’s bonds due 2014, 2019 and 2022 to its emerging-market index series in 2012, predicting the inclusion may lure $1.5 billion of portfolio investments to Africa’s biggest oil producer. Barclays added some of the country’s debts to its index last year.

“JPMorgan will want to add more Nigerian bonds in the future as old ones on their portfolio drop in tenor and there is need to review and add longer-tenor bonds that will reflect true pricing,” Kunle Ezun, a fixed-income securities and currency analyst at Ecobank Transnational Inc. (ETI) in Lagos, said by phone. “The addition will give the Nigerian bond market a global outlook, increase investor demand and drop yields.”

The yield on Nigerian bonds due March 2024 fell 1.8 percent to 12 percent yesterday, according to data compiled by Bloomberg.

To contact the reporter on this story: Emele Onu in Lagos at eonu1@bloomberg.net

To contact the editors responsible for this story: Vernon Wessels at vwessels@bloomberg.net Dulue Mbachu, Ana Monteiro

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