BNY Mellon and Standard Bank Launch Global Depositary Notes to Boost Access to Nigerian Debt Market
Oru Leonard
Bank of New York Mellon Corp. (BNY Mellon) and Standard Bank Group Ltd. have partnered to introduce Global Depositary Notes (GDNs) backed by Nigerian sovereign debt denominated in naira. This initiative aims to provide international investors with streamlined access to Nigeria’s high-yield debt market.
The GDNs will enable global institutional investors to settle transactions through major international clearing systems, Euroclear and Clearstream, making participation more accessible.
Nigeria’s sovereign debt offers some of the highest yields in emerging markets, with 182-day Treasury bills yielding 18.5% and the 2033 benchmark bond trading at 19.33%.
Chris Kearns, global head of depositary receipts at BNY Mellon, believes the program will unlock investment potential across Africa and contribute to the development of capital markets on the continent.
Sola Adegbesan, head of client, Africa regions and international global markets at Standard Bank, describes the GDNs as a simplified and accessible entry point into the Nigerian market, presenting investors with a compelling opportunity to invest in one of Africa’s most dynamic economies.
The GDNs are expected to increase market liquidity, stabilizing financial markets and attracting more investment.
The program will facilitate foreign investment, driving economic growth and development in Nigeria.
By issuing GDNs, Nigeria can access hard currency, critical for economies with volatile local currencies.
The initiative represents a significant milestone in efforts to deepen foreign access to Nigeria’s local debt market. In addition, the program is expected to contribute to Nigeria’s economic growth by attracting foreign investment and promoting capital market development.
Launch of GDNs demonstrates Nigeria’s commitment to restoring investor confidence and rebuilding foreign capital inflows.
