Nigeria to Ghana Eurobonds Plunge as oil Rout Hits Africa, Yields Rise

Sub-Saharan African Eurobonds fell; pushing yields on securities from Nigeria to Angola to record highs, as sinking oil prices put pressure on commodity producers.
Rates on Nigerian notes due July 2023 jumped 80 basis points to 7.36 per cent in London, an all-time high and compared with 5.85 per cent more than a week ago. Those on Ghana’s August 2023 bonds surged 124 basis points to 10.3 per cent, their highest ever. Yields on five-year Angolan debt jumped 71 basis points, the most on record, to 7.72 per cent. Nigerian borrowing costs are now higher than those of Kenya, Rwanda, Senegal and Ivory Coast, all of which have lower credit ratings. Africa’s largest economy and crude producer is having elections in February as Brent’s plunge below $65 a barrel threatens export earnings, 95 per cent of which come from oil, and government revenue, 70 per cent of which comes from the commodity. 

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