Banking

LAGOS (Capital Markets in Africa) – Quasi-sovereign bonds, notes from companies at least partially owned by a government, are in vogue for firms including Goldman Sachs Group Inc. and Barings LLC that are seeking strong returns amid lots of economic uncertainty. This debt, which includes some credit risk, pays more than sovereign notes and is often considered safer than pure corporate bonds. A Bloomberg Barclays gauge of emerging-market company and quasi-sovereign dollar debt returned 5.4% since the…

The government is considering removing restrictions on bankers’ bonuses as part of its plan to ditch EU rules and to make the City more competitive. The idea is at an early stage and not yet part of any public consultations, as officials fear scrapping the bonus cap could trigger a public backlash. But the move has support among some within the Treasury as a way to make London more attractive for senior bankers than Frankfurt,…

JOHANNESBURG (Capital Markets in Africa) – South Africa’s central bank will probably keep the benchmark interest rate unchanged and lower its economic-growth forecasts on Thursday as the country reels from a third wave of Covid-19 restrictions and after deadly riots. While output rose more than expected in the three months through March and data, including the composite leading business-cycle indicator, suggest an acceleration in gross domestic product in the second quarter, the unrest that erupted in…

JOHANNESBUR (Capital Markets in Africa) — The World Bank’s International Finance Corp. will provide $150 million to Absa Group Ltd. in what the lenders called Africa’s first certified green loan. Funds allocated to South Africa’s third-largest bank will be used to lend to the nation’s renewable energy sector and aid its recovery from the Covid-19 pandemic, according to a statement on Thursday. The IFC “estimates that there is a $588 billion investment opportunity in climate…

LAGOS (Capital Markets in Africa) — Atlas Mara Ltd., the pan-African banking group started by Bob Diamond, has drawn interest from Nigerian and Middle Eastern lenders for its remaining assets on the continent, according to people familiar with the matter. The London-listed group has received a number of approaches for its 49.97% holding in Lagos-based Union Bank of Nigeria Plc, the people said, asking not to be identified as the talks are private. Nigeria’s Zenith Bank Plc and Access…

LONDON (Capital Markets in Africa) — The U.K.’s economic rebound from the pandemic is already fueling speculation that Bank of England policy makers this week will start discussing how and when they can ease their foot off the stimulus pedal. The nine-member Monetary Policy Committee will maintain its target for 150 billion pounds ($209 billion) of bond purchases this year, a survey of economists shows. Some investors expect officials to slow the pace of buying…

LAGOS (Capital Markets in Africa) – Nigeria’s central bank removed the boards of FBN Holdings Plc and its main subsidiary First Bank Nigeria Ltd. for appointing a new chief executive officer without regulatory approval. The Central Bank of Nigeria ousted Gbenga Shobo as CEO of First Bank Nigeria and reinstated former head, Adesola Adeduntan, a day after it queried the appointment, Governor Godwin Emefiele said at a media briefing on Thursday. First Bank, Nigeria’s oldest lender…