Market Review: $4bn Eurobond Oversubscription: Investors Still Have Confidence in Nigeria
This edition of the "Market Review" features Mr. Ebo Ayodeji, Head, Retail Investment, Chapel Hill Denham, as he speaks on the "Implications of Nigeria's $4bn Eurobond Oversubscription for The Capital Market".
According to him, the successful Eurobond outing will reduce the borrowing activities of the Federal Government in the domestic market. He believed that the improved participation in the domestic market can be traceable to higher liquidity and the anticipation that the interest rate will moderate before the end of the year.
Speaking further he said the low yields in the developed economies led the foreign investors to tap into the Eurobond, while Nigerian investors hedged against the high inflation rate. Looking at the macro-economic environment, he stressed the need for the Federal Government to explore how to mobilize capital beyond borrowing and attract more private capital into the nation.