Bank of New York Mellon Corp. (BNY Mellon), alongside Standard Bank Group Ltd., has launched global depositary notes backed by Nigerian sovereign debt denominated in naira.
In a statement by the Central Bank of Nigeria (CBN) on Thursday, the initiative was reported by Bloomberg the previous day.
It noted that the initiative aims to give international investors streamlined access to Nigeria’s high-yielding debt market.
The new depositary notes will be eligible for settlement through major international clearing systems, Euroclear and Clearstream, allowing broader participation from global institutional investors.
This development is seen as a significant step in deepening foreign access to Nigeria’s local debt market and further integrating it into the global financial system.
The statement read, “The initiative is designed to give international investors streamlined access to the elevated yields available in Nigeria, Africa’s most populous nation.
“The depositary notes will be eligible for settlement through major international clearing systems, Euroclear and Clearstream, enabling broader participation from global institutional investors. This development represents a significant milestone in efforts to deepen foreign access to Nigeria’s local debt market.”
In an earlier statement by the Bank of New York Mellon Corp, it was noted that the Global Depositary Notes (GDN) program will simplify access for global investors to high-yield, local-currency Nigerian government bonds and Treasury bills (T-Bills).
It noted that the program combines Standard Bank’s strong local presence with BNY Mellon’s global cross-border investment infrastructure to offer Nigerian debt securities, denominated in naira (NGN), through GDNs.
The BNY Mellon statement added, “The GDNs will be issued in two series per Nigerian bond: Reg S and 144A and will be eligible for settlement in Euroclear and Clearstream.”
In the statement, Sola Adegbesan from Standard Bank added that the GDN program represents a unique opportunity for investors to access one of Africa’s most dynamic economies, offering a simplified entry point into Nigeria’s debt market.