Standard Bank Group has partnered with Bank of New York (BNY) Mellon Corporation, an American international financial services company, to launch global depositary notes (GDN) backed by Nigerian sovereign debt denominated in naira.
GDNs are a type of global depository receipt (GDR), which are negotiable certificates issued by a depositary bank, representing ownership of a company’s shares.
The shares are typically held in trust by the bank in the company’s home country, while the GDRs are traded on international stock exchanges.
GDNs are used by companies, particularly those in emerging markets, to raise capital from international investors.
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A report by Bloomberg on Wednesday shows that the GDN in naira is designed to give international investors streamlined access to the elevated yields available in Nigeria.
“The depositary notes will be eligible for settlement through major international clearing systems, Euroclear and Clearstream, enabling broader participation from global institutional investors,” the report reads.
“This development represents a significant milestone in efforts to deepen foreign access to Nigeria’s local debt market.”
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According to the report, Chris Kearns, BNY Mellon’s global head of depositary receipts, said the programme is expected to help unlock investment potential across Africa and contribute to the development of capital markets on the continent.
