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Nigeria’s FX policy won’t harm foreign bonds

Nigeria’s Eurobond roadshow in London has demonstrated that there would be appetite for a sovereign bond, despite lingering concerns over the country’s FX policy among investor and unwillingness on the Nigerian side to fully devalue the naira. Although local debt may fluctuate, there is unlikely to be any significant effect on the country’s foreign bonds.

10 Jun 2016

Sub-Saharan Africa split on Eurobonds

Sovereign issuers across Sub-Saharan Africa have been relatively quiet on the Eurobond front this year. Ghana has opted for a syndicated loan instead of a Eurobond over fears of paying high yields; however Nigeria could end the drought and is looking to tap the Eurobond market to fund its budget deficit.

6 Jun 2016

South Africa’s corporates shun the markets

Although there is concern over S&P Global Ratings’ upcoming review of South Africa, a lack of corporate activity on the international debt markets is not a recent phenomenon; simply put, country’s fundamentals have been deteriorating for some time.

1 Jun 2016

MTN Uganda calls up banks for US$114mn loan

MTN Uganda’s loan is a rare transaction amid low fixed income activity in the country. The deal attracted the interest of international lenders due to the strength of the borrower in the region’s markets, which assisted in achieving competitive pricing.

27 May 2016

Banking Africa’s Corporate Sector

Africa’s corporate sector is grossly under-banked. The corporate sector will undoubtedly be the main driver of Africa’s growth over the medium term. This will require credit.

27 May 2016

Nigeria easing up currency controls could prompt net outflows

The possibility of a partial free float of the naira would benefit the Nigerian economy. The country’s FX reserves would see a reprieve, and low dollar-denominated oil revenues would be bolstered by a reset in naira rates.

26 May 2016

African debt issuance dries up – for now

The scarcity of corporate bond issuances across Sub Saharan Africa follows a lack of sovereign issuance, with South Africa being the only country in the region to issue on the international markets this year. It appears that many corporates are reassessing their capital expenditure plans and funding needs, while states planning debt sales may wait until after a US interest rate rise.

19 May 2016

South African market volatility to intensify in coming weeks

The rand opened weaker on Monday and stayed relatively depressed Tuesday as market uncertainty increased following reports over the weekend that South Africa’s Finance Minister would be arrested. Analysts say the volatility is likely to intensify in the weeks to come.

17 May 2016

Financing Africa’s Infrastructure Pipeline

Most African economies look set to have a tough year ahead but one thing seems to remain consistent, whether in North, East, West or Central and Sub Saharan Africa: the thirst for infrastructure investment. According to the World Bank, Africa’s infrastructure deficit is estimated at US$38bn of investment per year and a further US$37bn per year in operations and maintenance. The total required…

16 May 2016

Lafarge Africa looking to cement bond deal

Lafarge Africa is looking to tap Nigeria’s local currency debt markets to fund the acquisition and service the debts of another company it has taken over. Currency volatility and unfavourable yields contributed to the decision to issue in naira, as the depth of the local market provided a larger investor base.

3 May 2016

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