Nigeria's Too Big to Fail Bank Rules Spur Bond Sale Rush

Central Bank of Nigeria (CBN), Abuja

Nigerian lenders are gearing up to sell the most debt in four years to bolster cash reserves, taking advantage of a drop in borrowing costs before the central bank increases how much capital they need to hold.

Banks may raise as much as $2.5 billion this year compared with $2 billion in 2013, according to FBN Capital, the investment-banking unit of Nigeria’s largest bank by assets FBN Holdings Plc. International debt sales are becoming more common as yields on Nigerian Eurobonds due July 2023 declined 96 basis points this year through yesterday to a record. That compares with an average 35 basis-point drop in emerging-market yields, according to Bloomberg indexes.

Read more: Nigeria’s Too Big to Fail Bank Rules Spur Bond Sale Rush – Bloomberg.

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