Banking

LAGOS (Capital Markets in Africa) — Nigeria’s central bank plans to set up an independently managed fund within the next 12 months to help build critical infrastructure in the West African nation once the coronavirus pandemic is over. The fund will start with a combination of debt and equity capital of 15 trillion naira ($39 billion) and focus on building transport networks “required to move agriculture products to processors, raw materials to factories, and finished goods…

NEW YORK (Capital Markets in Africa) — Executives at regional U.S. banks often say they’re only going to do as well as their clients. That’s now more true than ever. Investors are focused on which firms are exposed to the wrong industries as the coronavirus pandemic roils the economy, and they plan to scour for clues as the lenders report results in coming weeks. Bank stocks have plunged as the duration and severity of the…

CAIRO (Capital Markets in Africa) — After making its biggest-ever interest-rate cut, Egypt is likely to hold fire Thursday as it tries to ringfence its debt from an emerging-market selloff sparked by the coronavirus. While central bank Governor Tarek Amer has said there’s scope for another reduction if needed, nine of 10 economists surveyed by Bloomberg predicted the Monetary Policy Committee will maintain the key deposit rate at 9.25%. One analyst sees a cut to 8.25%. It slashed rates by 300…

JOHANNESBURG (Capital Markets in Africa) — The credit ratings of South Africa’s five largest banks were downgraded deeper into junk by Fitch Ratings, which cited a deteriorating operating environment following the outbreak of the novel coronavirus. The ratings were reduced by one notch to BB, two steps below investment grade and one notch lower than that of South Africa, Fitch said in a statement late Tuesday. Moody’s Investors Service also lowered its assessment on the…

LAGOS (Capital Markets in Africa) – Fitch Ratings has downgraded the three-highest rated banks in Nigeria, Zenith Bank (Zenith), Guaranty Trust Bank (GTB) and United Bank for Africa (UBA), to Long-Term Issuer Default Rating (IDR) ‘B’ and Viability Rating (VR) ‘b’. Fitch has also placed the Long-Term IDRs, VRs and National Ratings of all 10 rated Nigerian banks (excluding Stanbic IBTC Holdings (SIBTCH) and Stanbic IBTC Bank (SIBTC) – which are not assigned VRs and…

LONDON (Capital Markets in Africa) — Thousands of bankers are set for a reprieve as European lenders reconsider their restructuring plans because of the widespread impact of the coronavirus. HSBC Holdings Plc is putting on hold as many as 35,000 job cuts while Lloyds Banking Group Plc halted its plans to trim around 780 positions. Credit Suisse Group AG Chief Executive Officer Thomas Gottstein said that the Swiss bank won’t announce any layoffs because of the virus, while Commerzbank AG and Societe Generale SA may slow the…

JOHANNESBURG (Capital Markets in Africa) — South African bonds soared, with the yield on the most-traded government securities falling by the most in 19 years, after the country’s central bank said it will start buying debt in the secondary market in an unprecedented intervention to boost liquidity. The move came as government yields reached record highs even after the South African Reserve Bank cut its policy rate last week by the most in a decade…