The African Development Bank (AfDB) has expressed interest in supporting Nigeria and Zambia with about $1.5 billion in local-currency bonds so as to finance infrastructure projects as emerging market bond yields rise on speculation that the Federal Reserve will reduce economic stimulus.
AfDB is however completing the planned size of the medium-term note programmes and had been in talks with authorities in the two countries,
Bloomberg quoted the Financial Technical Services Manager, AfBD, Olivier Eweck, to have revealed this in an interview from the Tunisian capital on July 5.
“Before the end of the month we would have made up our minds on the numbers,” he said.
The Nigerian issues may be worth as much as $1 billion and the Zambian debt may reach the kwacha equivalent of $500 million.
African countries are stepping up sales of local and foreign debt, targeting funds for infrastructure on a continent where many lack regular access to services such as water and electricity.
The offers came as borrowing costs increase amid speculation that the Fed would begin scaling back the US debt-buying programme that pumped cheap money into assets around the world, including emerging markets.