Corporations tapping funds from the debt market of Africa’s biggest economy to meet working capital needs and other financial obligations are having to pay more for such, in a shift that means issuers may no longer be able to leverage low rates of the recent past to refinance higher-cost debt.
“Corporates such as Nigerian Breweries, Dufil Prima, Coronation and Fidson, also adjusted their yields upward in a bid to raise a combined sum of 70 billion naira,” it said. The urgency to shore up working capital and refinance high-priced loans had sparked off a frenzy for corporate debts of short tenor among issuers.