The Editorial Team |

High Africa Yields Raise Debt-Service Concern, AfDB Says

LAGOS (Capital Markets in Africa) – Some African countries are overpaying for dollar bonds, raising concern about debt-service costs at a time when currencies are weakening against the greenback, according to the African Development Bank. High-interest rates make the continent’s bonds attractive to investors despite questions about the true extent of the debt loads of countries such as Zambia and the Republic of Congo. “Raising a 30-year bond at a yield of 950 basis points — that’s…

Foreigners Can’t Resist South African Debt. That’s a Problem

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – Foreign investors just can’t resist South African bonds — that should worry policy makers in Africa’s most-industrialized economy. Non-resident holdings of the country’s debt climbed to 43 percent in March from 41 percent at the end of December, according to National Treasury data. That’s almost double the emerging-market average, according to Goldman Sachs Group Inc. figures. When it comes to fixed-rate securities, which constitute 82 percent of South Africa’s 1.76 trillion rand ($140 billion)…

Moody’s Says Nigeria May Keep Several Naira Rates Until 2020

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Nigeria will probably maintain its system of multiple exchange rates, which the International Monetary Fund has long-urged it to scrap, until at least early 2020, according to Moody’s Investors Service. Merging the naira’s various rates any sooner might force the government to weaken the currency and raise fuel prices, which would accelerate inflation, the ratings company said. Nigerian monetary and fiscal authorities are likely to wait until investments in oil…

Iran Crisis Warps OPEC Equation as Saudis Signal More Supply

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – The international nuclear agreement with Iran might not be the only deal U.S. President Donald Trump has unraveled. On Monday, Saudi Arabian Energy Minister Khalid Al-Falih was repeating his mantra that production cuts by OPEC and its allies must keep going. Within 48 hours, the kingdom had raised the prospect of increasing output. Between the two pronouncements came Trump’s decision to scrap the Iran deal, re-imposing sanctions on the world’s fifth-biggest oil exporter. “There…

Oil at $100 Is a Possibility Next Year, Bank of America Says

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Oil prices could rally to $100 a barrel next year, a level not seen since 2014, as supply risks in Venezuela and Iran strain global markets, according to Bank of America Corp. Brent futures, trading near $77 on Thursday, are set to reach $90 in the second quarter of 2019 as world inventories shrink, the bank said. As that view hinges on OPEC reviving output and a limited impact on…

Steinhoff Hits New Low After Warning of Deeper Hole in Accounts

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – Steinhoff International Holdings NV’s shares plunged to a record low after the retailer warned of impairments beyond the 6 billion euros ($7.2 billion) reported in December and said it’s facing at least five lawsuits. Auditors at PwC have told the owner of Conforma in France and Mattress Firm in the U.S. that the overstatement of profits and the handling of off-balance-sheet entities will result in “material additional” asset write-downs, Steinhoff…

Oil Traders Prepare to Cut Iranian Crude on Trump Sanctions

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – European oil refiners and trading houses began preparing to cut purchases of Iranian crude after Washington imposed harsher sanctions on shipments from Tehran than many in the energy industry had expected. The Trump administration has given buyers 180 days to wind down imports after pulling out of a landmark nuclear deal with world powers. Many of the traders and refiners who spoke to Bloomberg anticipate they’ll have to curb purchases…

« 1 … 512 513 514 515 516 … 1,077 »