Nigeria eyes China’s panda bond market to help plug $11bn deficit

Nigeria is considering selling a Chinese panda bond to help finance a budget deficit of about $11bn, its finance minister has said.

“The opportunity now, with the renminbi being a reserve currency, we are looking obviously at the lowest cost of funds to fund our budget deficit. Initially we were looking simply at the eurobond but then we began to explore opportunities in the renminbi market so there is a possibility of issuing a panda bond,” Kemi Adeosun told the Financial Times and Reuters in an interview. Panda bonds are renminbi-denominated debt sold by foreigners into China’s bond markets.

Check out the Financial Times for more on the story