By Libby George and Colleen Goko

LONDON/JOHANNESBURG (Reuters) -Uganda – a landlocked African nation that until recently struggled to get a World Bank loan – is the latest hot destination for investors chasing yields as this year’s risk-on mood rolls forward, fuelling a push into domestic debt of riskier, smaller emerging economies known as frontier markets.

More than $2 billion of Uganda’s domestic government bonds are now held offshore, according to analysts – a record – while countries including Egypt, Nigeria and Kazakhstan also draw cash into local currency debt, as investors intensify their search for opportunities.

“You squeeze the lemon and the last drop in there is usually local (currency debt) and frontier,” said Philip Meier of Gramercy.

Fuelled by markets awash with cash an

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