Nigeria’s Eurobond yields fell for a fourth day to a record as oil, the country’s key export, gained and foreign-exchange reserves rose.
Borrowing costs on $500 million dollar debt due January 2021 slid one basis point, or 0.01 percentage point, to 4.232 percent at 1 p.m. in London, the lowest since issuance in January 2011, according to data compiled by Bloomberg. Yields on international bonds of Africa’s biggest oil producer have dropped 206 basis points from a high of 6.29 percent in December 2011.
Crude traded close to its highest level in almost two weeks in New York as China’s official manufacturing index rose to a seven-month high. Bonny Light Crude, Nigeria’s main export grade, added 0.41 percent to $112.92 in New York. The nation’s foreign-exchange reserves have increased 34.9 percent this year to $44.4 billion as at Nov. 28, the Abuja-based Central Bank of Nigeria published on its website today.
The Nigerian bonds are being “supported by favorable market sentiments, the elevated oil price and the continued accumulation of foreign reserves,” Samir Gadio, a London-based emerging-markets strategist at Standard Bank Group Ltd., said today in an e-mailed reply to questions.
The naira weakened less than 0.1 percent at 157.215 a dollar on the interbank market in Lagos. The currency has strengthened 3.2 percent this year, the second-best performer in Africa, according to data compiled by Bloomberg.
The yield on 16.39 percent naira debt due January 2022 fell 11 basis points to 12.19 percent, according to yesterday’s prices on the website of the Lagos-based Financial Markets Dealers Association.
Ghana’s cedi gained for the second day, adding 0.3 percent to 1.8986 a dollar in Accra, the capital.