{"id":13548,"date":"2012-08-16T02:47:11","date_gmt":"2012-08-16T00:47:11","guid":{"rendered":"http:\/\/www.myza.co.za\/08\/nigeria-set-to-be-included-in-jp-morgan-government-bond-index\/"},"modified":"2012-08-16T02:47:11","modified_gmt":"2012-08-16T00:47:11","slug":"nigeria-set-to-be-included-in-jp-morgan-government-bond-index","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/nigeria-set-to-be-included-in-jp-morgan-government-bond-index\/","title":{"rendered":"Nigeria set to be included in JP Morgan government bond index"},"content":{"rendered":"

\t\t<\/span><\/p>\n

By Tosin Sulaiman<\/span><\/p>\n

<\/span><\/p>\n

JOHANNESBURG<\/span> Aug 15 (Reuters) – Nigeria is likely to be
\nincluded in JP Morgan’s Government Bond Index – Emerging Markets
\n(GBI-EM) from October, potentially bringing up to $1 billion
\ninto one of Africa’s most developed debt markets, the bank said
\non Wednesday.<\/p>\n

<\/span><\/p>\n

The inclusion of the continent’s top crude oil producer,
\nwhich will become the second African constituent of the index
\nafter South Africa, will be phased over three months, from Oct.
\n1 to Dec. 3., JP Morgan said.<\/p>\n

<\/span><\/p>\n

With around $170 billion of assets under management
\nbenchmarked against the index and given that Nigeria is expected
\nto have a weight of 0.59 percent in the index by December 3,
\nthere could be over $1 billion flowing into its local bond
\nmarket in the coming months, said Giulia Pellegrini, JP Morgan
\neconomist and strategist for Sub-Saharan Africa.<\/p>\n

<\/span><\/p>\n

“This is a game-changer for the Nigerian bond market,” she
\nsaid. “With yields currently north of 16 percent, offering a
\nhefty premium to the current GBI-EM Index yield of 5.8 percent,
\nthat estimate may well be revised to the upside as investors are
\nattracted by the possibility to capture higher returns than in
\nthe other local markets in the index.”<\/p>\n

<\/span><\/p>\n

Inclusion in the index would also support the efforts of the
\nNigerian government to deepen the bond market, Pellegrini added.
\nThe total domestic debt stock is currently around $38 billion,
\nincluding federal government bonds (accounting for $23 billion),
\nas well as state government and corporate bonds.<\/p>\n

<\/span><\/p>\n

“It raises the visibility of the Nigerian bond market on the
\ninternational scene, placing what has been so far deemed a
\n“frontier” market a step closer to more mainstream investment
\ndestinations,” she said.<\/p>\n

<\/span><\/p>\n

Three Nigerian bonds, maturing in 2014, 2019 and 2022, will
\nbe eligible for the GBI-EM as they are the most liquid, though
\nthe list may be subject to change depending on market
\nconditions. Inclusion of more bonds in the index is possible in
\nthe future, Pellegrini said.<\/p>\n

<\/span><\/p>\n

The move follows the announcement in April that South Africa
\nwould be included in Citi’s World Government Bond Index in
\nOctober. Citi estimates that up to $7.5 billion could flow into
\nthe country’s bond market as a result.
\n\u00a0 Continued…<\/strong><\/span><\/p>\n

<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

By Tosin Sulaiman JOHANNESBURG Aug 15 (Reuters) – Nigeria is likely to be included in JP Morgan’s Government Bond Index – Emerging Markets (GBI-EM) from October, potentially bringing up to $1 billion into one of Africa’s most developed debt markets, the bank said on Wednesday. The inclusion of the continent’s top crude oil producer, which […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-13548","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/13548","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=13548"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/13548\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=13548"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=13548"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=13548"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}