Slow take off for Eurobond issue in Africa


“I don’t see many more countries [other] than Nigeria, South Africa, Botswana, Namibia and probably a couple more in Western Africa issuing Eurobonds, Mauritius in the South. Even with this risk capita I don’t expect many sub-Saharan countries to own a Eurobond market,” Grandes, the director of research at the International School of Management in Paris told CNBC Africa on Friday.

The Nigerian bond market is one of the few that can offer a Eurobond. It remains a veritable source of long term funding for both the federal and state governments particularly in the areas of infrastructure development.

“Nigeria has been growing for years at seven to eight per cent GDP and has been able to manage its fiscal accounts. The progress you are trying to make to improve institutional framework will be necessary to keep pushing forward the corporate bond development agenda” said Grandes.


In order to continuously increase opportunities in the market he also believes that the Central Bank of Nigeria (CBN) should introduce market friendly regulations to ease the issuing of bonds.

“The Central Bank can play a key role by continuing to bring down its monetary policy interest rate and by the interest rate channel and the credit channel transmitting this into lower long-term cost of funding. They can continue to do that alongside bringing inflation down,” he said.

“I think it’s also the Nigerian Stock Exchange that has to play a role together with the Central Bank. There are other actors that have to continue to make efforts to produce a more developed corporate bond market.”

Grandes indicated that there is a positive outlook for Nigeria going forward.