Nigerian Bank Debt Taps Turned Off by Oil-Price Slump
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Central bank rules to curb foreign-currency borrowing by Nigerian lenders threaten to halt Eurobond sales by banks in Africa’s biggest oil producer as lower crude prices heighten risks to the naira.
Banks will probably turn to rights offers and naira debt rather than selling dollar bonds, according to FBN Capital, the investment-banking unit of Nigeria’s largest bank by assets, Lagos-based FBN Holdings Plc. Nigerian dollar notes lost 0.4 percent this month, compared with a 2.2 percent average return among 57 emerging markets tracked by Bloomberg indexes.