Call us on
+44 (0) 207 045 0920

Hedging against FX volatility: What instruments are available to African corporates, and how can they be implemented?

Broadcast on Nov 25, 2020 from Livestream: Bonds, Loans & Sukuk Africa 2020 - Virtual Conference

Strategic Partner

National Treasury, Republic of South Africa

Platinum Sponsor

Absa

Platinum Sponsor

Africa Finance Corporation

Platinum Sponsor

Standard Bank

Gold Sponsor

African Export-Import Bank (Afrexim)

Gold Sponsor

MUFG

Gold Sponsor

SMBC

WAEMU Sponsor

Agence UMOA-Titres

Silver Sponsor

Development Bank of Southern Africa

Silver Sponsor

Emirates NBD

Silver Sponsor

Rand Merchant Bank (RMB)

Bronze Sponsor

African Trade Insurance Agency

Bronze Sponsor

Fitch Ratings

Bronze Sponsor

GCR Ratings

Bronze Sponsor

KFW DEG

Subscribe for access:

  • What instruments are available (natural or constructed) to hedge against currency depreciation? How accessible are they?
  • How can corporates optimise balance sheet management and improve ALM to include hedging instruments?
  • USD vs. local currency: Is USD the best currency for hedging when it will be linked to LIBOR? How to assess local currency hedging performance with the transition to the new benchmark rate

Moderator

Reggie Mlangeni

Reggie Mlangeni

Head of Client Solutions Group, Global Markets

Absa

Reggie Mlangeni

Reggie Mlangeni

Head of Client Solutions Group, Global Markets at Absa

Reggie Mlangeni is the Managing Principal responsible for Absa’s Client Solutions Group, a subdivision of the Global Markets business. The team he leads is responsible for tailoring bespoke solutions to our corporate as well institutional clients in their risk management and yield enhancement needs respectively. Our product classes range from foreign exchange, interest rate, credit, equity, and commodity derivatives.

Reggie has 15 years Global Markets experience, during which time he has worked in foreign exchange, bonds, and money markets trading. Once he discovered his passion for sales, he pivoted his career towards derivative sales. During this time he has worked for Investec Bank as well as Standard Bank. He holds a Masters in Business Administration from the Gordon Institute of Business Science.

He has a passion for the advancement of the African continent, and believes financial innovation is going to be integral in the realization of this vision. He has worked across most of the sub-Saharan markets primarily Kenya, Nigeria, Uganda, Tanzania, Mozambique and Botswana. While residing in Nairobi he was responsible for the advancement of financial innovation in foreign exchange and credit derivatives offering for Standard Bank across their East African jurisdictions.

He is a keen golfer, although his handicap doesn’t reflect the extent of the interest.

Absa

Reggie Mlangeni

Absa Group Limited (‘Absa Group’) is listed on the Johannesburg Stock Exchange and is the parent company of one of Africa’s largest diversified financial services groups.

Absa Group, through its worldwide affiliates and subsidiaries (collectively referred to as “The Group”), offers an integrated set of products and services across personal and business banking, corporate and investment banking, wealth and investment management and insurance.

The Group has a presence in 12 countries in Africa, with approximately 42 000 employees.

The Group’s registered head office is in Johannesburg, South Africa, and it owns majority stakes in banks in Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, South Africa (Absa Bank Limited), Tanzania (Barclays Bank Tanzania and National Bank of Commerce), Uganda and Zambia. The Group also has representative offices in Namibia, Nigeria, London and New York as well as insurance operations in Botswana, Kenya, Mozambique, South Africa, Tanzania and Zambia.

For further information about Absa Group Limited, please visit: www.absa.africa

LinkedIn Page: https://www.linkedin.com/compa...

Speakers

Dirkje Bouma

Dirkje Bouma

Dirkje Bouma

Group Treasurer at Growthpoint Properties

Dirkje Bouma finished her undergraduate studies in Business Economics in the Netherlands in 1994 and graduated in September 1995 with a Master of Science degree in Finance at Strathclyde University in Glasgow (the United Kingdom). In 2003 she earned the right to use the Chartered Financial Analyst (CFA) designation.

Dirkje was part of the founding team of Infrastructure Finance Corporation Limited (“INCA”). From 2004, Dirkje was an Executive Director of INCA, being responsible for Treasury, with a liability and hedge book in excess of R6,0 billion. In March 2012, she joined Growthpoint Properties Limited and is now the Group Treasurer. She is responsible for the R43 billion (USD2,5 billion) debt portfolio (funding negotiations, management of bond issues and interaction with rating agencies) and the cash flow in the business. She and her team also monitor and manage the financial risks of Growthpoint (financing and liquidity risk, interest rate risk, currency risk and counter-party risk), this includes a swap portfolio to the tune of R42 billion (USD2,5 billion) and currency hedges for the flow of dividends from Growthpoint’s investments in Australia and Europe.

In 2018, Dirkje was instrumental in the placement of Growthpoint’s inaugural Green Bond, which was the first corporate green bond to be listed on the JSE. She was also responsible for Growthpoint’s debut Eurobond issue, the first of such issuance by a South African REIT. Dirkje is a non-executive director of Growthpoint Healthcare Management Company as well as Workshop 17 which operates a network of co-working spaces

Growthpoint Properties

Dirkje Bouma
Prince Essilfie

Prince Essilfie

Senior Vice President, Treasury Client Solutions

Africa Finance Corporation

Prince Essilfie

Prince Essilfie

Senior Vice President, Treasury Client Solutions at Africa Finance Corporation

Prince Essilfie is the head of Treasury Client Solutions at Africa Finance Corporation. In this role, he provides hedging solutions to African projects/AFC clients, manage market risk on AFC’s balance sheet as well as provides structured funding solutions to African banks and central banks. Prior to AFC, Prince traded Corporate Bonds at UBS, Interest Rate Derivatives at TransMarket and African fixed income and currencies at Morgan Stanley.

Africa Finance Corporation

Prince Essilfie

AFC, an investment grade multilateral finance institution, was established in 2007 with an equity capital base of US$1.1 billion, to be the catalyst for private sector-led infrastructure investment across Africa. With a current balance sheet of approximately US$6.1 billion, AFC is the second highest investment grade rated multilateral financial institution in Africa with an A3/P2 (Stable outlook) rating from Moody’s Investors Service. AFC successfully raised US$1,150 billion (US$650 million and US$500 million) in 2019, US$500 million in 2017 and US$750 million in 2015 through Eurobond issuances; out of its Board-approved US$5 Billion Global Medium-Term Note (MTN) Programme. All Eurobond issues were oversubscribed and attracted investors from Asia, Europe and the USA.

AFC’s investment approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth. AFC invests in high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. To date, the Corporation has invested over US$7.2billion in projects within 32 countries across Africa.

Olamide Edun

Olamide Edun

Olamide Edun

Director at Lion's Head Global Partners

Lion's Head Global Partners

Strategic Partner

National Treasury, Republic of South Africa

Platinum Sponsors

Absa Africa Finance Corporation Standard Bank

Gold Sponsors

African Export-Import Bank (Afrexim) MUFG SMBC

WAEMU Sponsor

Agence UMOA-Titres

Silver Sponsors

Development Bank of Southern Africa Emirates NBD Rand Merchant Bank (RMB)

Bronze Sponsors

African Trade Insurance Agency Fitch Ratings GCR Ratings KFW DEG