Africa
Stanbic Kenya: Political Volatility Will Moderate in 2018, Boosting Debt Capital Markets
Private sector credit growth slowed to record lows this year, but there is reason to believe many of the factors driving this – a drought-induced economic slowdown, political volatility, and an interest rate cap – will moderate in 2018. Wegoki Mugeni, Stanbic Kenya’s head of debt capital markets for East Africa, shares her views on why this is likely to create a supportive environment for more…
4 Jan 2018
For Bond Bankers and Capital Markets Experts, MIFID II Raises More Questions than Answers
As Europe continues to steam ahead towards the 3 January implementation date for the Markets in Financial Instruments Directive II (MiFID II), the continent’s ambitious sequel aimed at making its financial industry safer and more transparent, a lack of certainty around how the rules will be applied is putting bond bankers on edge and prompting difficult questions about how the banking sector is…
18 Dec 2017
How African Microfinance Lenders Can Gain Access to Capital Markets
Microfinancing institutions (MFIs) have for years played a key part in driving growth in Sub-Saharan Africa. As investment needs and businesses grow, finding and establishing new channels of funding is becoming a top priority for MFIs – and the debt capital markets could be the answer.
11 Dec 2017
Off The Record: The Top 5 Emerging Market Credit Trends in 2018
It has been a stellar year for emerging market credit, with most of the key benchmark indices outperforming and EM fundamentals broadly improving – while the global economy continues to heat up. But with QE – one of the main forces driving yield-hungry investors into EMs – winding down, a slew of EM elections on the horizon, and uncertainty over the direction of large developed economies like the…
7 Dec 2017
Emerging Markets FX Technical Picture: How Far Can This Correction Go?
How far can this EM FX correction go? Since mid-November, the greenback has been broadly softer due to a variety of factors. EM FX has taken advantage of this, and the top EM performers are ZAR (+5.5%), MXN (+3.8%), and RUB (+3%). TRY has been noticeably lagging, -1.4% since November 15. Many EM currencies are starting to bump up against key chart points, and so the dollar may finally get some…
1 Dec 2017
Can South Africa Get its Fiscal Groove Back?
With real GDP growth at near zero and fiscal projects trending downward, it’s unsurprising Standard & Poor’s didn’t wait for the ANC leadership contest in late 2017, or the next budget release, to cut the country’s credit rating to junk. The real question now is: how quickly can the country reverse course?
29 Nov 2017
Africa Credit Markets Brief: 01 November – 15 November
AfDB issued a USD2bn bond –Afreximbank to mobilise USD100bn to finance new trade deals – First Rand Bank secures dual-tranche syndicated loan – Nigeria to seek USD5.5bn in foreign borrowing – Namibia to boost public spending – DRC fails to account funds from Chinese loan – Chad and Glencore to talk debt restructuring – Army detains Zimbabwe’s President Robert Mugabe
15 Nov 2017
Private Participation in Water, Wastewater Projects: Applying the GCC Experience Across META
The saying ‘water is the new oil’ has never been more accurate than it is today. The Middle East, Turkey and Africa (META) contains some of the world’s most water-scarce regions. Population growth and urbanisation have led to a rising demand for water and growing levels of wastewater. Increasing water production and ensuring efficient, effective wastewater treatment are essential to the continued…
7 Nov 2017
BBH: Frontier Sovereign Rating Model for Q4 2017
BBH has produced the following ratings model to assess relative sovereign risk in Frontier Markets. A country’s score directly reflects its creditworthiness and underlying ability to service its external debt obligations.
3 Nov 2017
Chellarams CFO: ‘Bond Market in Nigeria Needs to be Less Prohibitive’
As the Nigerian sovereign steams ahead with fresh borrowing on the local and international debt capital markets, there are concerns corporates could be missing out on attractive new opportunities for investor diversification. Sandeep Kumar Sood, Group Chief Finance Officer at Chellarams plc., a Nigeria-based conglomerate with a presence in a range of sectors, speaks to some of these challenges.
1 Nov 2017