ttmacoy:
I assume you know what a bond is i.e. long term debt issued by a country as opposed to Treasury Bills which are more short to medium term.

A Eurobond is just a bond raised on the international market in Euros. The name refers to the currency e.g. Yankee bonds are bonds raised in dollars, Samurai bonds are bonds raised in Yen, etc.

A simplistic example, Nigeria issues a bond of 100 Euros at 10% for 30 years means Nigeria will pay 10 Euros annually in interest to the bond holder and at year 30 return the principal of 100 Euros.

Why is the foreign investor not buying T.B that gives more yield

I hope

GavelSlam:
https://www.bloomberg.com/news/articles/2017-11-20/nigeria-set-to-issue-3-billion-of-eurobonds-in-biggest-sale-yet

Nigeria Raises $3 Billion in Its Biggest Eurobond Sale Yet

By Paul Wallace

20 November 2017, 16:38 GMT

Updated on 21 November 2017, 14:02 GMT

Nation sold 10-year notes at 6.5%, 30-year bonds at 7.625%

Issue received orders of about $11 billion: central bank
Nigeria raised $3 billion in a two-part international bond sale as it seeks to fund a fiscal deficit and reduce its local-currency debt burden.

The West African nation split the offering equally between 10- and 30-year tranches. The yield was 6.5 percent for the shorter notes and 7.625 percent for the 30-year portion, down 25 basis points on each tranche from the initial guidance. The issue received $11 billion of bids, according to central bank Governor Godwin Emefiele.

The offering, its biggest Eurobond issuance ever, is the nation’s third sale this year. While Africa’s biggest oil producer is still reeling from its worst economic slump in about 25 years, Nigeria has benefited from strong demand for emerging-market assets and Brent crude’s 30 percent rise since the end of June to more than $62 per barrel.


Most of the new debt will fund Nigeria’s 2017 budget, with the rest used to refinance maturing local-currency bonds, according to the government.


The yield on the 30-year bond was 25 basis points lower than its 15-year deal sold in February. The rate on those -- the nation’s longest bonds until now -- fell four basis points to 6.69 percent as of 1:58 p.m. in London on Tuesday.

“Extending our debt profile in the international market to 30 years establishes a basis for the longer term financing required for transformational infrastructure investment,” Finance Minister Kemi Adeosun said in a statement on the Debt Management Office’s website.

Egypt, Morocco and South Africa are the only other African nations to have sold 30-year dollar bonds. Before now, the most Nigeria had issued in one day was $1.5 billion.

Citigroup Inc. and Standard Chartered Plc managed the transaction. They arranged meetings in London and New York last week between investors and Nigerian officials including Adeosun and Emefiele.

— With assistance by David Malingha Doya

cc: dominique, MrKnowitall, Mynd44.

I may not know a lot about Economics, but common sense would suggest that it is utter foolishness to borrow money to pay off debts. This only means that in 10 years, the FG will again borrow to pay off these bonds. The painful thing about Nigeria is not the current situation, it's the strong indication that it will only get worse with this Government at the helm.

I hope zombies realise that this means Buhari just borrowed 3 billion dollars again to mismanage

Pesuzok:


I wonder why someone will buy 10year bond at 6.5% while 1 year T.B is at 18%. Economist in the house please explain. Is it not the same risk?

*Modified*

So many other factors. Most importantly, your T.B is domestic and affected by whatever happens in the Nigerian economy (inflation, exchange rate depreciation etc). Contrarily, the Euro bond is denominated in the currency of a more stable economy with virtually no expectation of a decrease in the value of Euro (at least, Euro is not as volatile as the Naira that speculation of changes in oil price can plummet it's value). Hence, lesser risk.

In essence, this Euro bond is for investors who want to invest in Nigeria but have skepticism about the performance of the economy (and it's exchange rate) in the future. Now they can go ahead with their investment with a mitigated risk of a depletion of Naira since the bond is snow denominated in a more "trusted" currency.

Nevee:

So many other factors. most importantly, your T.B is domestic and affected by whatever happens in the Nigerian economy (inflation, exchange rate depreciation etc). Contrarily, the Euro bond is denominated in the currency of a more stable economy with virtually no expectation of a decrease in the value of Euro (at least, Euro is not as volatile as the naira that speculation of changes in oil price can plummet it's value). In essence

Becoming clearer, but is it not risky investing in a country that there only means for foreign earning is oil.

Lol. You are not totally off the mark, but allow me to tweak the answer.

A Eurobond is a note issued by a country or organization in any currency other than the currency of the country in which it is listed. The name Eurobond just happens to coincide with the Euro currency. For example, this particular Eurobond is a dollar issue, but the note will trade on the London stock exchange. Get it?

A foreign bond on the other hand is a note issued by a country or organization in the currency of the country in which it is listed. e.g. This would have been a foreign bond if the issue was Sterling denominated and trading on the London Stock Exchange. Get it? Examples of Foreign bonds are Yankee bonds, Samurai bonds, panda bonds and others.

Hope I was able to convince you and not confuse you......(in our primary school debate voice).

ttmacoy:
I assume you know what a bond is i.e. long term debt issued by a country as opposed to Treasury Bills which are more short to medium term.

A Eurobond is just a bond raised on the international market in Euros. The name refers to the currency e.g. Yankee bonds are bonds raised in dollars, Samurai bonds are bonds raised in Yen, etc.

A simplistic example, Nigeria issues a bond of 100 Euros at 10% for 30 years means Nigeria will pay 10 Euros annually in interest to the bond holder and at year 30 return the principal of 100 Euros.

Pesuzok:


Becoming clearer, but is it not risky investing in a country that there only means for foreign earning is oil.

Well, as with every other investments, it is. However, I doubt that is a major concern as they must have done their due diligence as regards our capacity to fund the bond. Depending on the terms of agreement, the bond could even be backed by our external reserves (which is dollar-denominated) so that if anything goes wrong with the mainstay of our economy (which is oil), we can resort to our reserves to pay the bond holders upon redemption.

As much as it may sounds a bit logical to refinance domestic debt with seemingly "cheap" foreign loan - rate wise - I hope whoever is concerned also understand that paying debt in dollars is a "cost" on its own.

Anyway, let's hope this will lessen the rate at which govt crowds out private sector credit and making access to fund difficult for private sector - this would be the only upside to this move.

And of course, it's a win for foreign investors since government cannot start printing more dollars to pay the debt in the foreseeable future which would have been a concern for investors if it's a naira denominated debt

crownfierce:
Can someone explain this euro bond thing in simpler terms. Wetin e mean sef??
Or are we out of recession?

Borrowing money in a currency other than your own, in the international capital markets. Often than not, these loans are USD denominated. So Naija just successfully raised $3Bn debt to finance our budget.

Another thing worth mentioning is the fact that the yield for our debt fell( VS early this year), indicative of a positive investors sentiments and stabilising macros( dropping inflation, increasing GDP) of the borrowing nation(Nigeria) .

In all, foreign investors are starting to see Nigeria as a less risky government in terms of portfolio investments .

Standchart and Citi are entitled to a certain percentage of the USD3Bn as lead arranger and joint arranger respectively, my God !

Pesuzok:


I wonder why someone will buy 10year bond at 6.5% while 1 year T.B is at 18%. Economist in the house please explain. Is it not the same risk?

Remember, this bond is denominated in euro but the treasury bill is in naira, two totally different currencies. Return (interest rates) on bonds is usually very low in developed markets sometimes hovering around 3%. Nigeria's is up to 6.5% because there's more risk with investing with Nigeria (sovereign ratings).

Again, the challenge with borrowing abroad is with exchange rate risk especially given the volatility of the naira. If we earn bulk of our revenues in naira, and have to pay off these euro bonds in the future in euro of course, a depreciation of the naira means we would need more of our naira revenue than currently envisaged to exchange for the euro and offset this debt. Else, we would have to dip our hands into any foreign currency savings like the excess crude account to offset the debt.

Borrowing is not bad. That's one of the ways to finance infrastructure and growth. The only condition is that you must invest it wisely so that the debt is able to generate enough future economic benefits especially in terms of growth to finance itself. My worry is that this government has almost doubled our debt levels without anything tangible in terms of infrastructure and other capital investments to show for it. Already, there's a debt overhang problem where we are spending much more on debt servicing than on capital expenditure.

If they continue like this, they will be mortgaging the future of both the present and future generation.

Summary:PMB has just borrowed money that will be paid when he's probably dead and gone.

Pesuzok:


I wonder why someone will buy 10year bond at 6.5% while 1 year T.B is at 18%. Economist in the house please explain. Is it not the same risk?

My understanding is that Nigeria is borrowing at 6.5% . The same money they give out to people in treasury bill at 17%.
The difference is that they accumulate more money but in reality they owe more. Sounds like ponzi .

It seems like this is what they are doing;
Borrow $3 billion from Euro bond, then use it to service the interest on the billions borrow under treasury bill.

If this bond is well utilised then is a win situation els it will become a burden for future government. 6.8% is a good deal but Nigerian government mortgaging our future to the tune of 3b UDS is a joke taken too far because they cannot be trusted with money talk more of a euro bond which is a must pay because it's backed by law

While I understand where you are coming from, I would like to propose a scenario.

You need #1 million to start a business, so you go to your trusted bank and borrow the money at an interest rate of 22% per annum for five years. This means that in addition to paying back the #1 million principal, you also end up paying #1.1 million in interest (#220,000 annual interest * 5years). In all, you are going to pay #2.1 million on a #1 million loan.

Eish. That's steep. Of course you don't wanna take that deal, but what can you do? You have to start the business. You have kids that are depending on you to earn an income from the business.

So, you take the loan at that ridiculously high rate.

Now stay with me.

A few weeks later, you run into an old friend who tells you he's now a credit officer in another trusted bank.

You tell him about the loan and he's appalled. He says, "Oh, why not come to my bank? We'll give you the loan at 7%".

7%. Wow! That's a game changer. Instead of having to pay #220,000 in interest every year, you would be paying #70,000 instead. Over the five year period, you would have saved yourself #750,000. That's too good for anybody to pass up.

Now what can you do? You have taken the first loan already and will not be able to cancel the contract without suffering a penalty and a damage to your creditworthiness (this is important for any business or nation).

So, you decide to take the new loan of #1 million at 7% pa and pay off the #1 million at 22% pa. Effectively, you have borrowed the money, but instead of paying #2.1 million over the life of the loan, you would end repaying #1.35 million.

That's a good deal, wouldn't you agree?

Now the FG was in this same situation, paying 22% annually (Avg effective yield of the 364DTM Tbill), when they could be paying 7% instead (Average FGN Eurobond yield). Therefore, they decided to refinance the debt to make it cheaper for them.

Consider the effects. The money they were spending on interest could have been used to pay salaries and build roads. The re-financing would make that possible. Also, banks were not lending money to Small businesses that needed the money because they were investing in the bills (Come on, 22%! Free money man! Who can pass that up). When small businesses can not access financing, this hampers growth in the economy. Now, with reduced T-bills supply, banks would have to increase lending to the general public in order to earn interest.

Hope this helps.

BanevsJoker:

I may not know a lot about Economics, but common sense would suggest that it is utter foolishness to borrow money to pay off debts. This only means that in 10 years, the FG will again borrow to pay off these bonds. The painful thing about Nigeria is not the current situation, it's the strong indication that it will only get worse with this Government at the helm.

MaryBenn:
One question- what is Euro bond?

Someone pls explain this thing

A bond denominated in a foreign currency.


I'm just concerned about currency risk seeing as Naira is pretty linked with oil prices and currency risk. The inflation also not good. It makes sense to refinance at lower yeild but the economy has to grow so debt doesn't become a burden.

seguno2:
Buhari is a monumental error of gargantuan proportions and a curse.
Borrowing despite:

- stories of recovered loot
- removal of fuel subsidies
- stamp duty for bank transactions
- rising oil prices

Recession instead of prosperity.
We are in trouble.
2019 is too far oh.

Smh. U just wasted your years in university for nothing. Do you even have the slightest inkling what this topic is about Na only how to throw tantrums and insults una sabi

jossey94:
While I understand where you are coming from, I would like to propose a scenario.

You need #1 million to start a business, so you go to your trusted bank and borrow the money at an interest rate of 22% per annum for five years. This means that in addition to paying back the #1 million principal, you also end up paying #1.1 million in interest (#220,000 annual interest * 5years). In all, you are going to pay #2.1 million on a #1 million loan.

Eish. That's steep. Of course you don't wanna take that deal, but what can you do? You have to start the business. You have kids that are depending on you to earn an income from the business.

So, you take the loan at that ridiculously high rate.

Now stay with me.

A few weeks later, you run into an old friend who tells you he's now a credit officer in another trusted bank.

You tell him about the loan and he's appalled. He says, "Oh, why not come to my bank? We'll give you the loan at 7%".

7%. Wow! That's a game changer. Instead of having to pay #220,000 in interest every year, you would be paying #70,000 instead. Over the five year period, you would have saved yourself #750,000. That's too good for anybody to pass up.

Now what can you do? You have taken the first loan already and will not be able to cancel the contract without suffering a penalty and a damage to your creditworthiness (this is important for any business or nation).

So, you decide to take the new loan of #1 million at 7% pa and pay off the #1 million at 22% pa. Effectively, you have borrowed the money, but instead of paying #2.1 million over the life of the loan, you would end repaying #1.35 million.

That's a good deal, wouldn't you agree?

Now the FG was in this same situation, paying 22% annually (Avg effective yield of the 364DTM Tbill), when they could be paying 7% instead (Average FGN Eurobond yield). Therefore, they decided to refinance the debt to make it cheaper for them.

Consider the effects. The money they were spending on interest could have been used to pay salaries and build roads. The re-financing would make that possible. Also, banks were not lending money to Small businesses that needed the money because they were investing in the bills (Come on, 22%! Free money man! Who can pass that up). When small businesses can not access financing, this hampers growth in the economy. Now, with reduced T-bills supply, banks would have to increase lending to the general public in order to earn interest.

Hope this helps.

May God bless u for this

jossey94:
While I understand where you are coming from, I would like to propose a scenario.

You need #1 million to start a business, so you go to your trusted bank and borrow the money at an interest rate of 22% per annum for five years. This means that in addition to paying back the #1 million principal, you also end up paying #1.1 million in interest (#220,000 annual interest * 5years). In all, you are going to pay #2.1 million on a #1 million loan.

Eish. That's steep. Of course you don't wanna take that deal, but what can you do? You have to start the business. You have kids that are depending on you to earn an income from the business.

So, you take the loan at that ridiculously high rate.

Now stay with me.

A few weeks later, you run into an old friend who tells you he's now a credit officer in another trusted bank.

You tell him about the loan and he's appalled. He says, "Oh, why not come to my bank? We'll give you the loan at 7%".

7%. Wow! That's a game changer. Instead of having to pay #220,000 in interest every year, you would be paying #70,000 instead. Over the five year period, you would have saved yourself #750,000. That's too good for anybody to pass up.

Now what can you do? You have taken the first loan already and will not be able to cancel the contract without suffering a penalty and a damage to your creditworthiness (this is important for any business or nation).

So, you decide to take the new loan of #1 million at 7% pa and pay off the #1 million at 22% pa. Effectively, you have borrowed the money, but instead of paying #2.1 million over the life of the loan, you would end repaying #1.35 million.

That's a good deal, wouldn't you agree?

Now the FG was in this same situation, paying 22% annually (Avg effective yield of the 364DTM Tbill), when they could be paying 7% instead (Average FGN Eurobond yield). Therefore, they decided to refinance the debt to make it cheaper for them.

Consider the effects. The money they were spending on interest could have been used to pay salaries and build roads. The re-financing would make that possible. Also, banks were not lending money to Small businesses that needed the money because they were investing in the bills (Come on, 22%! Free money man! Who can pass that up). When small businesses can not access financing, this hampers growth in the economy. Now, with reduced T-bills supply, banks would have to increase lending to the general public in order to earn interest.

Hope this helps.

I really appreciate this. Unfortunately, this government has resurrected the pessimist in me. I feel they are leading Nigerians towards the edge of a cliff.

blackpanda:
Smh. U just wasted your years in university for nothing. Do you even have the slightest inkling what this topic is about Na only how to throw tantrums and insults una sabi

You have done worse right now.
Throwing tantrums and insults instead of showing that you have more than “the slightest inkling what the topic is about”.
You should proceed further to find those whom you can intimidate with your EMPTY grammar and vocabulary.
Inkling ko. Nku cream ni.

How can an average Nigerian or retail investor buy the Euro bond..

I see Treasury Bills giving returns of sub 10% by end of q1

Hahaha at bolded.

Thanks for the correction, I get it now. The differences are in the currency, foreign country of issue and where it is listed.

jossey94:
Lol. You are not totally off the mark, but allow me to tweak the answer.

A Eurobond is a note issued by a country or organization in any currency other than the currency of the country in which it is listed. The name Eurobond just happens to coincide with the Euro currency. For example, this particular Eurobond is a dollar issue, but the note will trade on the London stock exchange. Get it?

A foreign bond on the other hand is a note issued by a country or organization in the currency of the country in which it is listed. e.g. This would have been a foreign bond if the issue was Sterling denominated and trading on the London Stock Exchange. Get it? Examples of Foreign bonds are Yankee bonds, Samurai bonds, panda bonds and others.

Hope I was able to convince you and not confuse you......(in our primary school debate voice).

jossey94:
While I understand where you are coming from, I would like to propose a scenario.

You need #1 million to start a business, so you go to your trusted bank and borrow the money at an interest rate of 22% per annum for five years. This means that in addition to paying back the #1 million principal, you also end up paying #1.1 million in interest (#220,000 annual interest * 5years). In all, you are going to pay #2.1 million on a #1 million loan.

Eish. That's steep. Of course you don't wanna take that deal, but what can you do? You have to start the business. You have kids that are depending on you to earn an income from the business.

So, you take the loan at that ridiculously high rate.

Now stay with me.

A few weeks later, you run into an old friend who tells you he's now a credit officer in another trusted bank.

You tell him about the loan and he's appalled. He says, "Oh, why not come to my bank? We'll give you the loan at 7%".

7%. Wow! That's a game changer. Instead of having to pay #220,000 in interest every year, you would be paying #70,000 instead. Over the five year period, you would have saved yourself #750,000. That's too good for anybody to pass up.

Now what can you do? You have taken the first loan already and will not be able to cancel the contract without suffering a penalty and a damage to your creditworthiness (this is important for any business or nation).

So, you decide to take the new loan of #1 million at 7% pa and pay off the #1 million at 22% pa. Effectively, you have borrowed the money, but instead of paying #2.1 million over the life of the loan, you would end repaying #1.35 million.

That's a good deal, wouldn't you agree?

Now the FG was in this same situation, paying 22% annually (Avg effective yield of the 364DTM Tbill), when they could be paying 7% instead (Average FGN Eurobond yield). Therefore, they decided to refinance the debt to make it cheaper for them.

Consider the effects. The money they were spending on interest could have been used to pay salaries and build roads. The re-financing would make that possible. Also, banks were not lending money to Small businesses that needed the money because they were investing in the bills (Come on, 22%! Free money man! Who can pass that up). When small businesses can not access financing, this hampers growth in the economy. Now, with reduced T-bills supply, banks would have to increase lending to the general public in order to earn interest.

Hope this helps.

it super helped

jossey94:
While I understand where you are coming from, I would like to propose a scenario.

You need #1 million to start a business, so you go to your trusted bank and borrow the money at an interest rate of 22% per annum for five years. This means that in addition to paying back the #1 million principal, you also end up paying #1.1 million in interest (#220,000 annual interest * 5years). In all, you are going to pay #2.1 million on a #1 million loan.

Eish. That's steep. Of course you don't wanna take that deal, but what can you do? You have to start the business. You have kids that are depending on you to earn an income from the business.

So, you take the loan at that ridiculously high rate.

Now stay with me.

A few weeks later, you run into an old friend who tells you he's now a credit officer in another trusted bank.

You tell him about the loan and he's appalled. He says, "Oh, why not come to my bank? We'll give you the loan at 7%".

7%. Wow! That's a game changer. Instead of having to pay #220,000 in interest every year, you would be paying #70,000 instead. Over the five year period, you would have saved yourself #750,000. That's too good for anybody to pass up.

Now what can you do? You have taken the first loan already and will not be able to cancel the contract without suffering a penalty and a damage to your creditworthiness (this is important for any business or nation).

So, you decide to take the new loan of #1 million at 7% pa and pay off the #1 million at 22% pa. Effectively, you have borrowed the money, but instead of paying #2.1 million over the life of the loan, you would end repaying #1.35 million.

That's a good deal, wouldn't you agree?

Now the FG was in this same situation, paying 22% annually (Avg effective yield of the 364DTM Tbill), when they could be paying 7% instead (Average FGN Eurobond yield). Therefore, they decided to refinance the debt to make it cheaper for them.

Consider the effects. The money they were spending on interest could have been used to pay salaries and build roads. The re-financing would make that possible. Also, banks were not lending money to Small businesses that needed the money because they were investing in the bills (Come on, 22%! Free money man! Who can pass that up). When small businesses can not access financing, this hampers growth in the economy. Now, with reduced T-bills supply, banks would have to increase lending to the general public in order to earn interest.

Hope this helps.

You have really done a good job with this explanation.

Kudos!

seguno2:


You have done worse right now.
Throwing tantrums and insults instead of showing that you have more than “the slightest inkling what the topic is about”.
You should proceed further to find those whom you can intimidate with your EMPTY grammar and vocabulary.
Inkling ko. Nku cream ni.

Sorry that u feel intimidated. But perhaps you should have paid more attention in class rather than gallivant aimlessly.

ttmacoy:
I assume you know what a bond is i.e. long term debt issued by a country as opposed to Treasury Bills which are more short to medium term.

A Eurobond is just a bond raised on the international market in Euros. The name refers to the currency e.g. Yankee bonds are bonds raised in dollars, Samurai bonds are bonds raised in Yen, etc.

A simplistic example, Nigeria issues a bond of 100 Euros at 10% for 30 years means Nigeria will pay 10 Euros annually in interest to the bond holder and at year 30 return the principal of 100 Euros.

thanks for the explanations

It helps them lock high interest rates. Let me explain.

I will try to avoid as much finance jargon as i can in this answer, but permit any slip ups.

Normally, a longer dated bill should command a higher rate of interest. The higher rate represents the higher amount of risk associated with tying down your money for a longer period.

Think about it. If you lent me #1000 for one month, you might not even ask me to pay interest (assuming i'm your guy). If you were to lend me that same amount for one year, you would be less reluctant to waive interest. This is because, during that period, you could have invested the money in another venture and earned income. Also, the longer I keep the money, the higher the risk of default (refusing to pay back). Another risk is time value of money (just a fancy term). It means that #1 today is not #1 tomorrow. This means that due to inflation(increase in prices of goods & services), when you pay the money at the end of the one year period, I would not be able to buy the same things I could have bought with the same amount a year earlier.

Are we together?

So, generally, a 1 year bill is usually cheaper than a 5-year bond. That 5-year bond is in turn supposed to be cheaper than a 10-year bond and so on....

That is not the case in Nigeria currently. We have what we call an inverted yield curve, caused by...well, thats another epistle. Basically, our 364DTM bill rates are higher than our 20-year note rates.

How is this relevant?

When deciding what instrument to buy, you should not just consider current rates, but also future rates.

It is true that T-bill rates are currently higher than the 10-year or 20-year rates. This means that for a rational investor, it would be better to invest in a 364DTM bill (Average: 22% yield) over a 10-year bond (Average: 16% yield).

Right?

Well.........

The outlook currently is that rates are going down. So, it makes sense to buy as much instruments as you can while the rates are still high. Now, as things return to normal in the economy, the yield curve is also expected to normalize (shorter dated bills would become cheaper than longer dated ones....rembember?).

Now, let's consider an investment of #1 million.

T-Bills - At 22%, you would receive an interest of #220,000 for one year. That's all. To earn another interest, you would have to re-invest that money again.....but this time at a lower rate (remember, we expect rates to fall and yield curve to normalize, therefore T-bill rates should drop faster than bond rates). If the interest rate falls 2% each year for the next 10 years, you would effectively earn #1.3 million in interest over 10 years. Thats good, right.

Now let's look at the bond. If you invested the same money in a ten year note at 16%, you would earn #1.6 million in interest over the same period. Do you get?

So, while it is rational to invest in a T-bill now (given the high interest rates there), if you expect the rates to drop, it would be more prudent to invest in a long term note. This helps you lock in the high rates currently obtainable in the market.

Hope this is clear.

Pesuzok:


Why is the foreign investor not buying T.B that gives more yield

MaryBenn:
One question- what is Euro bond?

Someone pls explain this thing

Even me sef, i no understand o

Exactly, I am glad my explanation helped. I have always had trouble simplifying things.

ttmacoy:
Hahaha at bolded.

Thanks for the correction, I get it now. The differences are in the currency, foreign country of issue and where it is listed.

You’re welcome.

What I explained was actually a foreign bond not Eurobond. Please look at jossey94 comment. He explained some key subtle differences between foreign bonds and Eurobonds that I missed out in my reply.

critic9ja:
thanks for the explanations

emmanuelewumi:
This will make returns on Treasury Bills investment to crash.

I really don't think it will crash the return on yield rate of the Treasury bill market. My reason is because of the speculative nature of the T-bills market due to its short issue to maturity duration. "Speculators, here I am referring to traders and short term investors that do not hold an open market position that exceeds 12months". Mind you,the speculative market space in all asset classes do carry a larger number of market participants compared to the more traditional long term investment minded individuals. This is due to the human psychology of quick gratification and reducing risk exposure to their investment portfolios. On the aspect of the 10&30year notes issued, I just think they are always over subscribed due to the mouth watering yield rate which is among the highest among 2nd tier emerging market economy. It's just so sad that the funds gotten from the bond issue will be squandered among politicians and will never be accounted for. I foresee a debt pardon by creditors in the future. This is the 3rd euro bond issue for the year and part of this current bond sale as stated in the write-up will be used to service previous coupon payouts. Nigeria,what a country. We are finished.

Hope it wouldn't backfired because we have a poor taxation system and businesses are packing up.

That means we are left with oil, whose price is outside our control and the major importers are planning to move to electric car.

Hope Nigeria will not default in the future, just Venezuela. Cos if it happened, na recession raised to power 1billion.