The Bank of New York Mellon Corp., in partnership with Standard Bank Group Ltd., has launched a new investment instrument: global depositary notes backed by Nigerian sovereign debt, denominated in naira, to expand international investor access to Nigeria’s high-yield local debt market, Bloomberg reported on Wednesday.
The depositary notes will be eligible for settlement through major international clearing systems, Euroclear and Clearstream, enabling broader participation from global institutional investors.
This development represents a significant milestone in efforts to deepen foreign access to Nigeria’s local debt market.
According to Bloomberg, 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 Kearns, the global head of depositary receipts at BNY Mellon, the program is expected to unlock investment potential across Africa and contribute to the development of capital markets on the continent.
