[June 23, 2011] Eurobonds Rise to Record High Tweet Jun 23, 2011 (This Day/All Africa Global Media via COMTEX) -- Nigeria's dollar bonds climbed to a record high on speculation that the country will continue to experience growth as high oil prices, rising foreign reserves and recent elections spur investor confidence. Bloomberg said the 6.75 per cent Eurobonds of due for maturity by 2021 rose 0.1 per cent to 104.981 cents to the dollar. The current position of the international bond is the highest level since the debt was issued in January, lowering the yield two basis points, or 0.02 percentage point, to 6.056 per cent . The $500 million of bonds is Nigeria's only international notes. The Federal Government had issued the debt instrument to spur corporate borrowing in the country. The Eurobond was highly successful A Senior Analyst at Roubini Global Economics, London, Rachel Ziemba , was quoted to have said: "There's just not a lot of supply and with oil prices high and the election having gone better than expected. Investors are looking for yield," Meanwhile, the Naira dipped against the dollar by 34 kobo to N153.81 at the Central Bank of Nigeria's (CBN) regulated Wholesale Dutch Auction System (WDAS) Wednesday, from its closing value of N153.47/$1 on Monday. THISDAY findings showed that the CBN maintained its $400 million supply of the greenback, even as demand slowed by $3 million to $476 million, compared with Monday's $479 million. However, the Naira maintained its position at other segments of the forex market on dollar inflow some oil companies. Dealers said that the other alternatives sources helped to plug the shortfall observed in the WDAS . They argued that the local currency will remain strong throughout this week, due to expected inflow from multinationals' periodic month end sale of the greenback. The apex bank has been defending the local currency around the + or - N150 to a dollar band at the bi-weekly auction. The CBN had resisted advice of international financial institutions, to devalue the local currency, saying that the structure of the country did not support that. Analysts at Renaissance Capital said: "The high oil price bodes well for Nigeria's petroleum industry. The smaller budget implies that spending, particularly on imports, will slow and pressure on reserves will ease." Nigeria's foreign reserves have climbed 3.8 percent this month to $33.3 billion as at Monday, data from the CBN showed. Bonny Light oil has risen 18 percent this year. [ Back To TMCnet.com's Homepage ]