BNY, Standard Bank Launch Global Depositary Notes for Nigerian Debt
TLDR
- BNY Mellon, in collaboration with Standard Bank Group, has launched Global Depositary Notes (GDNs) backed by Nigerian sovereign debt denominated in naira
- The program allows international investors to access high-yielding Nigerian government bonds and Treasury bills through GDNs
- This opens Nigeria’s local debt market to a broader pool of institutional investors by overcoming clearing and custody barriers
BNY Mellon, in collaboration with Standard Bank Group, has launched Global Depositary Notes (GDNs) backed by Nigerian sovereign debt denominated in naira. The initiative was confirmed by the Central Bank of Nigeria on Thursday following a Bloomberg report.
The program allows international investors to access high-yielding Nigerian government bonds and Treasury bills through GDNs that will be eligible for settlement in Euroclear and Clearstream. This opens Nigeria’s local debt market to a broader pool of institutional investors by overcoming clearing and custody barriers.
Nigeria offers some of the highest yields in emerging markets. As of June 2025, 182-day Treasury bills yielded 18.5%, while the 2033 benchmark bond was trading at 19.33%.
GDNs will be issued under Regulation S and Rule 144A formats, offering flexibility to global investors. BNY Mellon will provide global infrastructure support, while Standard Bank leverages its local market expertise.
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Key Takeaways
The launch of Global Depositary Notes for Nigerian sovereign debt marks a major step in integrating Africa’s most populous country more fully into global capital markets. The structure allows investors to hold naira-denominated assets without having to directly access Nigeria’s domestic bond market or navigate local settlement complexities. With elevated domestic yields, Nigeria has remained a high-interest destination for carry trade strategies, despite macroeconomic risks like inflation, currency volatility, and liquidity constraints. Until now, foreign participation in local bonds has been limited by concerns over capital controls and repatriation delays. This new GDN program resolves key friction points. By using international clearing systems like Euroclear and Clearstream, investors can buy and settle Naira instruments more seamlessly. The dual issuance format (Reg S and 144A) expands eligibility across investor types, including U.S. institutions.
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