Africa’s ‘Prejudice Premium’ Is Sparking a Bond Market Debate
Some leaders see a “prejudice premium.” Others say default risk and a lack of data play a bigger role.
Citigroup Inc.’s Daniel Lebetkin has helped steer almost all of the $18 billion in international bond sales from Africa this year. From Nigeria to Kenya, he’s watched investors snap up debt at a blistering pace. One thing hasn’t changed: African nations pay more to borrow.
“It’s certainly unfortunate,” says Lebetkin. “There’s just a structural difference in yields.”