Nigeria’s Eurobonds dip over Ghana’s sell pressure

The prices of 13 Nigeria’s Eurobond fell on Wednesday as a selloff on Ghana’s assets pulled down the prices along with Angola’s six bonds.

According to market reports, among the 13 Eurobond issued by Nigeria, the Eurobond due in January 2049 fell by the biggest price of $3.5 to $61.75 and a yield of 15.17 per cent. However, Nigeria’s asset with the highest yield is the bond due in March 2029 and that lost $1.875 to $71, with a yield of 15.65%.

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For Angola, an oil-producing country like Nigeria, the biggest loser was the bond due in April 2032, which lost $6.25 to $70.25 and a yield of 14.63%.

The indicators also show all of Ghana’s 14 Eurobonds declined in price. Ghana’s paper due in January 2026 declined by the highest price change of $7, falling to a bid price of $49.75 and a yield of 47.87%.

“If Ghana has some bonds falling $7, other African countries will see a selloff which is what is happening,” a Lagos-based bond trader, who pleaded for anonymity, told Daily Trust.

The selloff is in sympathy, “even though their conditions are totally different”.

“That return is too good to be true because it won’t be realized,” added the trader.

Ghana’s bond due in April 2025 lost $5.375 to $40.625 and a yield of 42.98%. Others fell by varying amounts to different yields, most of them in the 20s, 30s, and 40s.

The selloff came two days after Ghana began talks with the International Monetary Fund for a bailout. It has a debt stock of 78% of its GDP, a 33.9% inflation (August) and the Cedi falling by 45% this year.