Banks have been leading Nigeria’s return to international capital markets this year. After a spate of eurobonds from the government, supranationals and private sector issuers between 2011 and 2014, issuance dropped as the country fell into economic crisis, partly caused by low oil prices and tough currency controls.
But issuance from Africa’s biggest economy has bounced back over the past 12 months. The sovereign’s $1bn bond in February made headlines but Nigeria’s two-year break from the eurobond market was actually ended by its fourth biggest lender, Access Bank, via a $300m deal in October 2016.
In June this year, the country’s biggest bank, Zenith, and United Bank for Africa (the fifth biggest) each raised $500m. It was the latter’s eurobond debut. In October, Nigeria’s seventh biggest lender, Fidelity, also debuted, with a $400m issuance.
All eyes are now on the other three leading banks – First Bank of Nigeria, Guaranty Trust Bank and Diamond Bank – to see if any of them follow suit.
All data sourced from www.thebanker.com
