Banking

LONDON (Capital Markets in Africa) — Global regulators’ approval of a U.S. dollar-denominated rate that assesses market credit risk is growing nearer as the beleaguered London interbank offered rate is set to be phased out, allowing financial service firms to fill the void with new benchmarks. Bloomberg’s Short-Term Bank Yield Index, or BSBY, adheres to the International Organization of Securities Commissions’ Principles for Financial Benchmarks, based on an independent assurance review, Bloomberg LP said in…

LAGOS (Capital Markets in Africa) — Navigating Nigeria’s foreign exchange rate policy is tricky. There are multiple exchange rates; officials issue confusing and contradictory statements; promised reforms don’t materialize; and the central bank and finance ministry don’t always appear to see eye-to-eye on how to manage the naira. Economic fallout from the pandemic, including a deterioration in state finances, has made the need for clarity all the more pressing. 1. Why does Nigeria have multiple…

JOHANNESBURG (Capital Markets in Africa) — A key funder of South Africa’s renewable energy drive is backing natural gas as the fuel needed to help the country bridge the transition from coal power generation to the use of wind and solar. Old Mutual Ltd.’s African Infrastructure Investment Managers will consider funding companies that compete for the right to produce 3,000 megawatts of electricity from gas in an upcoming bid round planned by the government, said Vuyo Ntoi, co-managing…

LONDON (Capital Markets in Africa) — As the U.K. inches out of its third Covid lockdown and leads the way in vaccinations, some financial firms are starting to entice employees back to deserted offices. Others are doubling down on the lure of living rooms. Goldman Sachs Group Inc. invited London employees back starting March 29, the day the U.K.’s blanket “stay home” mandate was lifted. Standard Chartered Plc is embracing a hybrid working model, mapping out strategies to…

LAGOS (Capital Bloomberg) — A widening gap between the spot and forward rates of the naira signals further devaluation of the currency, an official of Nigerian lender FCMB Group Plc said at an investor call. The bank is projecting a boost in profits due to a weaker naira in 2021 as it did in the previous year when foreign currency earnings rose more than two-fold to 10 billion naira ($24.5 million) from 3.5 billion naira,…

JOHANNESBURG (Bloomberg) — South Africa’s largest lender to farmers has delayed a debt restructuring deal with creditors because of conditions attached to a government bailout, forcing it to repay what it owes to Standard Chartered Plc. Land & Agricultural Development Bank said on Wednesday that a March 31 deadline to reach an agreement won’t be met. The government’s 7 billion rand ($474 million) commitment required “a material change” to previous versions of plans to deliver on…