Economics
Nigeria to More Than Double Dollar Debt: It's Simple Math
- Nation pays average 16% on naira debt vs 6% for dollar bonds
- Nigeria changing debt mix to increase portion of external debt
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Why pay an average 16 percent for naira bonds when there’s a world of investors willing to accept 1,000 basis points less?
Nigeria’s Eurobonds yield an average 6 percent, which explains why Africa’s biggest economy is planning to raise as much as $5.5 billion in the next three months. That will more than double its outstanding dollar bonds to about $9 billion, which is still less than a third of the nation’s foreign currency reserves, according to data compiled by Bloomberg.