BNY Mellon, Standard Bank to facilitate access to Nigerian Naira Debt — Bloomberg report
Bank of New York Mellon Corp., in collaboration with Standard Bank Group Ltd., is launching global depositary notes backed by Nigerian sovereign debt denominated in naira, according to a Bloomberg report.
The initiative is designed to give international investors streamlined access to the elevated yields available in Nigeria, Africa’s most populous nation.
The depositary notes will be eligible for settlement through major international clearing systems, like Euroclear and Clearstream, enabling broader participation from global institutional investors.
This development, Bloomberg noted, represented a significant milestone in efforts to deepen foreign access to Nigeria’s local debt market.
Bloomberg announced that Nigeria sold 182-day Treasury bills on June 4 at a yield of 18.5%, while its 2033 benchmark bond was trading at a yield of 19.33% as of Wednesday — among the highest returns in emerging markets.
According to Chris Keams, the global head of depositary receipts at BNY Mellon, the program is expected to help unlock investment potential across Africa and contribute to the development of capital markets on the continent.
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