Africa
Ghana Doubles-Down on Halving Deficit but Risks Remain
Hamstrung by a deficit twice the size of that estimated by the government of former President of Ghana John Mahama, all eyes are on how the newly elected President Nana Akufo-Addo and his right-hand man, Finance Minister Ken Ofori-Atta, navigate delivering key fiscal consolidation reforms and keep voters happy. With the economy on the mend, things are looking up – but the road ahead is riddled…
10 Mar 2017
Financing Africa’s Cities
Cities have the power to transform themselves and raise the standard of living for their inhabitants, but in Africa many have struggled in this endeavor due to lack of access to financing. To get a sense of how we can succeed, it is important to assess how others have failed. Here is a first-hand glimpse of the unsuccessful launch of West Africa’s first city-level bond.
9 Mar 2017
CASE STUDY: Demand for Nigerian Eurobond Swells, Repricing Secondary Curve
The Federal Republic of Nigeria managed to aggressively price an oversubscribed US$1bn 15-year trade against a backdrop of significant political and economic volatility, a sign that investor confidence is slowly returning to the African sovereign.
6 Mar 2017
CASE STUDY: Amandi Energy Goes Non-ECA Route on IPP Deal
The Amandi Energy Project was the only large scale base-load independent power generation project in sub-Saharan Africa to achieve financial close in 2016 and a strategically important project for the development of the country’s energy sector.
1 Mar 2017
CASE STUDY: Afreximbank Sees Tight Pricing on Dual-Currency Loan Despite Dollar Strength
African Export-Import Bank (Afreximbank) managed to secure a dual currency syndicated term loan at the lowest margins yet, despite a strengthening dollar and increasing emerging market volatility following the US elections.
28 Feb 2017
CASE STUDY: AFC Prices First Dollar Sukuk of 2017
The AFC’s upsized US$150mn was the first US dollar denominated sukuk issued by an African multilateral development bank and the first dollar denominated sukuk of 2017, helping the financial institution fund a number of infrastructure projects on the continent.
23 Feb 2017
Basel III Could Drive Banking Sector Credit Rush in South Africa
With about ZAR72bn in senior unsecured bank debt maturing in 2017 and new Basel III requirements being phased in January 2018, analysts are forecasting an uptick in senior and subordinated issuance in South Africa through 2017 – a welcome change from relatively subdued volumes seen last year.
17 Feb 2017
African Underperformers Under Stress, But Causes Differ
Nigeria and Mozambique are both in crisis-mode, but the underlying causes mean investors should be cautious to treat each case separately. To paraphrase Leo Tolstoy, all healthy economies are the same, but the sick ones struggle in their own unique way.
30 Jan 2017
Access Bank CFO Seyi Kumapayi on Managing Risk in a Tough Market
Nigeria’s economy was hit hard in 2016 as the naira tumbled and revenues from oil imports dwindled, the result of a dramatic shift in monetary policy and persistently low oil prices, respectively. We speak with Access Bank CFO Seyi Kumapayi about the bank’s landmark bond sale in this challenging landscape.
25 Jan 2017
Kenya’s Currency Plunge Adds to Banking Woes
The Central Bank of Kenya (CBK) continues to drain excess of liquidity from the market, with smaller banks that depend on the regulator for capital likely to take a hit, analysts suspect.
18 Jan 2017