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.
A news report from Bloomberg indicated that the initiative was designed to give international investors streamlined access to the elevated yields available in Nigeria, Africa’s most populous nation.
According to the online medium, the depositary notes will be eligible for settlement through major international clearing systems, Euroclear and Clearstream, enabling broader participation from global institutional investors.
The news report further disclosed 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.
As stated by the Global Gead of Depositary Receipts at BNY Mellon, Chris Kearns, the programme is expected to help unlock investment potential across Africa and contribute to the development of capital markets on the continent.
Experts believe that the launching global depositary notes backed by Nigerian sovereign debt denominated in naira represents a significant milestone in efforts to deepen foreign access to Nigeria’s local debt market.
