Nigeria’s Eurobond market remained resilient on Tuesday as yields across most sovereign dollar-denominated bonds traded below their original issue levels, reflecting sustained investor confidence in the country’s external debt instruments.
Data released by the Debt Management Office (DMO) showed that several of Nigeria’s Eurobonds continued to trade above par value, indicating strong demand from international investors despite prevailing global economic uncertainties and elevated geopolitical risks.
The 2027 Eurobond, issued at a yield of 6.50 percent, closed with a market yield of 5.63 percent and a price of $101.18, while the 2028 Eurobond traded at $100.88 with a yield of 5.70 percent.
Similarly, the 2029 Eurobond closed at $106.24 with a yield of 5.89 percent, significantly below its original issue yield of 8.38 percent.
Investors Favour Nigeria’s Medium-Term Debt
The strongest performance was observed in Nigeria’s medium-term Eurobond segment, where investors continued to price in improving sovereign credit conditions and stronger fiscal stability.
The 2030 Eurobond traded at $103.08 with a yield of 6.19 percent, while the 2031 Eurobond closed at $108.42 and yielded 6.59 percent.
Nigeria’s June 2031 Eurobond recorded one of the highest prices in the curve at $112.74, with investors accepting a yield of 6.58 percent compared to the original issue yield of 9.63 percent.
Market analysts said the decline in yields relative to issuance levels suggests that investors continue to view Nigerian sovereign debt as attractive, particularly as the government pursues fiscal reforms, foreign exchange market adjustments and measures aimed at improving revenue generation.
Long-Term Bonds Show Mixed Sentiment
Longer-dated instruments continued to attract investor interest, although yields remained elevated compared to shorter maturities.
The 2038 Eurobond closed at $103.57 with a yield of 7.24 percent, while the 2046 Eurobond traded at $112.30 and yielded 7.89 percent.
The 2049 Eurobond stood at $114.15 with a yield of 7.90 percent, while the 2051 bond closed at $103.02 and yielded 7.97 percent.
The higher yields on longer maturities reflect investors’ demand for additional compensation for duration risk and uncertainties associated with long-term global interest rate movements.
Eurobond Curve Signals Improving Market Perception
The pricing trend across Nigeria’s Eurobond curve suggests that international investors remain comfortable with the country’s credit outlook despite persistent challenges facing emerging and frontier markets.
A number of the bonds continue to trade at premiums to their face value, particularly the 2034, 2046 and 2049 instruments, indicating strong appetite for Nigerian sovereign debt in the secondary market.
The 2034 Eurobond emerged as the highest-priced instrument in the portfolio at $120.62, while yielding 7.10 percent compared to its issue yield of 10.38 percent.
Outlook
Analysts expect Nigeria’s Eurobond performance to remain closely tied to developments in global interest rates, crude oil prices, foreign exchange stability and the Federal Government’s fiscal reform agenda.
With several Eurobonds continuing to trade above par and yields remaining below issuance levels, the market appears to be signalling confidence in Nigeria’s ability to meet its external debt obligations.
Investors will continue to monitor macroeconomic indicators, external reserve levels and sovereign credit developments for further direction in the Eurobond market.