Low debt, light payments add luster to Nigeria's dollar bonds

Nigeria‘s dollar bonds have been battered by tumbling oil prices and domestic politics, but thanks to low debt ratios, a light repayment schedule and demand from local banks they should weather the storm.

Pressure on the continent’s largest economy, which relies on oil exports for 70 percent of government revenues, is rising, with last year’s oil price collapse compounded by the postponement of a presidential election scheduled for Feb 14.

The result has been a 20 percent fall in the naira’s exchange rate against the dollar, and forward markets that are used to betting on future exchange rate swings price it to drop a further 40 percent over the coming year.

Read more: Low debt, light payments add lustre to Nigeria's dollar bonds | Reuters.