The offering achieved the lowest (outstanding) Nigerian bank Eurobond coupon, supported by an over three times oversubscribed orderbook of over $1.6 billion, which represents the largest orderbook by a Nigerian bank. An independent investor, Amaechi Egbo said by issuing foreign currency-denominated debt instruments, Nigerian banks are exposing themselves to foreign exchange risk. According to him, these banks will face foreign exchange risk over the life of the bonds when issued unless the government reviews the monetary policy downward. According to the stakeholders, any foreign currency-denominated corporate bond issued by a local company imposes exchange rate risk on the issuer who earns their income in local currency. He categorically stated that the factors that will prevent default like forex earning assurance or derivatives contracts to mitigate currency risk are not in place in Nigeria.

Source: The Guardian May 02, 2022 04:54 UTC