Market News

Bank of New York Mellon Corporation has partnered with Standard Bank Group Ltd to introduce global depositary notes (GDNs) linked to Nigerian local-currency sovereign debt, in a move aimed at attracting international investors to the country’s high-yield fixed-income market.

According to a joint statement issued on Wednesday, the new notes will be eligible for settlement through Euroclear and Clearstream, two of the world’s major international clearing systems. The product allows investors exposure to Nigerian naira-denominated instruments without having to directly navigate the complexities of the local bond market.

Recent figures show that Nigerian government debt offers some of the highest returns globally. The Central Bank of Nigeria’s 182-day treasury bills issued earlier this month yielded 18.5%, while the benchmark bond maturing in 2033 was trading at a yield of approximately 19.33% as of Wednesday.

Chris Kearns, global head of depositary receipts at BNY Mellon, said the offering is designed to support capital market growth in Africa by providing a bridge between global capital and local markets. He said the initiative “unlocks investment potential” by simplifying access to the continent’s evolving debt landscape.

Standard Bank also emphasized the appeal of the program, describing it as a streamlined entry point for investors seeking to engage with Nigeria’s economy. “It presents a compelling opportunity to invest in one of Africa’s most dynamic economies,” said Sola Adegbesan, the bank’s head of Africa regions and international global markets.

The launch comes as Nigeria implements a series of economic reforms aimed at stabilizing its macroeconomic outlook. Under President Bola Tinubu, the government has removed fuel subsidies, adjusted the exchange rate regime, and pursued policies intended to bolster investor confidence. These measures have contributed to rising foreign reserves, reduced inflationary pressure, and a narrowing spread between the official and parallel naira exchange rates.

Last month, credit ratings agency Moody’s upgraded Nigeria’s foreign currency debt from Caa1 to B3 and revised the outlook to stable, citing improved fiscal indicators.

The new GDN program represents a growing trend of financial institutions using international platforms to link global investors with emerging market debt instruments, offering both yield and diversification opportunities.