 |
Nigeria’s plans to issue a $3.3 billion Eurobond to fund its budget and refinance loans this year will be delayed, after Eurobond yields across emerging markets shot up due to the oil price plunge and the increasing threat of the coronavirus across the globe.
Côte d’Ivoire, Benin and South Africa, which also had plans to issues Eurobonds this year, are similarly likely to postpone any debt issues until markets stabilize.
“When a crisis like this hits, investors will de-risk portfolios and it is much easier for them to pull out of more liquid assets such as Eurobonds,” says Samir Gadio, head, Africa strategy at Standard Chartered.
Events such as these might force the hand of the Nigerian administration to refocus away from oil revenue once and for all – David Cowan, Citi
As another investment banker says: “At times like this, investors will leave any asset they believe is higher...
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
