Nigeria’s eurobond yields fall below issue rates amid strong demand
By Abiodun Folarin.
Nigeria’s Eurobonds recorded relatively strong market performance at the close of trading on May 29, 2026, with yields on most sovereign issues remaining below their original issuance levels, reflecting sustained investor confidence in the country’s external debt instruments.
Data released by the Debt Management Office (DMO) showed that the country’s Eurobond prices traded above par across most maturities, while yields ranged from 5.58 per cent to 7.96 per cent.
The 2027 Eurobond, a 6.500 per cent US$1.5 billion issue, closed at a price of 101.293 US dollars with a yield of 5.582 per cent, lower than its issuance yield of 6.500 per cent. Similarly, the 2028 Eurobond traded at 101.124 US dollars, with a yield of 5.598 per cent compared to its issue yield of 6.125 per cent.
The 2029 and 2030 Eurobonds also maintained positive performance, closing at 106.571 US dollars and 103.487 US dollars, respectively. Their yields stood at 5.802 per cent and 6.079 per cent, both below the rates at which they were issued.
Among the medium-term securities, the 2031 Eurobond issues posted yields of 6.425 per cent and 6.457 per cent, while the 2032 and 2033 bonds closed with yields of 6.534 per cent and 6.822 per cent, respectively.
The 2034 Eurobond, carrying a coupon rate of 10.375 per cent, traded at a premium price of 121.206 US dollars and delivered a yield of 7.024 per cent, significantly lower than its issue yield, indicating strong demand from investors.
For the longer-dated bonds, yields rose gradually along the maturity curve. The 2036, 2038, 2046, 2049 and 2051 Eurobonds recorded yields of 7.088 per cent, 7.194 per cent, 7.896 per cent, 7.902 per cent and 7.955 per cent, respectively. Despite the higher yields associated with longer maturities, most of the instruments continued to trade above par value.
Market analysts say the relatively lower yields compared to issuance levels suggest improved investor sentiment toward Nigeria’s sovereign credit outlook, as bond prices and yields generally move in opposite directions. Higher bond prices indicate stronger demand from investors in the secondary market.
The Eurobond pricing data, sourced from Bloomberg and published by the DMO, provides a snapshot of Nigeria’s standing in the international debt market and serves as a key indicator of foreign investors’ perception of the country’s economic and fiscal prospects.
