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Bond issuance across emerging markets dropped sharply in March, hitting its lowest level for the month since the global financial crisis.
Data from Bloomberg shows that governments and companies in developing economies raised just US$19 billion from dollar- and euro-denominated bonds, a steep 66 percent decline from the US$56 billion recorded in March 2025.This marks the weakest March performance since 2009.
Access Bank Group, in its latest market commentary, said the slowdown follows a strong start to the year, with emerging market borrowers raising a combined US$213 billion in January and February.
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“March is typically an active period for debt issuance, but activity slowed this year due to the outbreak of war in Iran. The conflict pushed oil prices above US$100 per barrel, heightening concerns over global growth and inflation.
As a result, investors retreated from emerging market assets, driving borrowing costs higher,” the bank said.
The average yield on emerging market dollar bonds rose by 66 basis points to 6.33 percent, the highest level since July 2025.
Despite the broader downturn, a few notable transactions were recorded. Angola led sovereign issuance with a US$2.5 billion bond sale on March 24, supported by strong investor appetite for oil-exporting economies.
Angola was also among the few developing countries to see its yield premium over US Treasuries narrow during the month, as investors diversified away from Middle Eastern energy assets.
Looking ahead, bond issuance from African sovereigns is expected to remain subdued unless tensions in Iran ease and oil prices retreat.
Elevated yields and risk premiums are likely to keep most non-oil exporters out of the international debt market.
In response, some countries may increasingly turn to domestic borrowing. Senegal has already adopted this approach, while larger economies such as Egypt, Nigeria, Kenya and South Africa could follow, depending on how long the conflict persists.
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