Modupe Gbadeyanka
By Modupe Gbadeyanka
In the just concluded week, the Federal Government successfully issued a fresh $500 million Eurobond for the second time in less than two months.
However, this round issue came at a cheaper cost than the initial $1 billion bond, coming at a yield of 7.5 percent, 0.357 percent lower than the initial bond which attracted a yield of 7.875 percent.
Elsewhere, FGN bonds prices traded at the OTC segment decreased across most of the maturities. The 20-year, 10.00 percent FGN July 2030 debt, the 10-year and 16.39 percent FGN JAN 2022 debt depreciated by N0.23 and N0.09 respectively; their corresponding yields rose to 15.79 percent (from 15.73 percent) and 15.90 percent (from 15.87 percent) respectively.
However, the 5-year, 15.10 percent FGN APR 2017 debt appreciated by N0.13; its corresponding yield fell to 12.21 percent (from 13.99 percent).
Elsewhere, FGN Eurobonds traded on the London Stock Exchange increased in value across all the maturities amid profit taking. The 10-year, 6.75 percent JAN 28, 2021 bond, the 5-year, 5.13 percent JUL 12, 2018 bond and the 10-year, 6.38 percent JUL 12, 2023 bond appreciated by $0.49 (yield fell to 5.51 percent), $0.16 (yield fell to 3.87 percent) and $0.56 (yield fell to 6.11 percent) respectively.
Source: Cowry Asset Management Ltd
