Features | - Part 235

Fitch: Angola’s Move to End IMF Talks Increases External Risks

ANGOLA, Capital Markets in Africa: The Angolan government’s decision to discontinue talks with the IMF on a potential loan increases risks to the sovereign’s external financing position if no other sources of external funding are available, Fitch Ratings says. We identified deteriorating external dynamics as a rating sensitivity when we revised the Outlook on Angola’s ‘B+’ sovereign rating to Negative from Stable in March. The IMF said last week that Angola wanted to halt talks…

Citigroup, JPMorgan Favour Zambia’s Dollar Debt in Bet on IMF Aid

Posted on by The Editorial Team

ZAMBIA, Nigeria, Capital Markets in Africa: Citigroup Inc. and JPMorgan Chase & Co. are among investors stocking up on Zambian dollar debt, anticipating that a growth revival and an International Monetary Fund aid package will help the southern African nation plug its yawning budget deficit. Citigroup started adding Zambian debt on June 10, while JPMorgan moved its holding of the nation’s dollar bonds to overweight, seeing room to “earn considerable pickup” amid signs of an improving economy….

Angolan Bonds Plunge as President Warns of Debt Payment Struggle

Posted on by The Editorial Team

ANGOLA, Capital Markets in Africa: Yields on Angolan Eurobonds soared after the leader of Africa’s largest oil producer said the country is struggling to meet its debt payments because of the crash in crude prices. Revenues are “barely enough” to pay off debt owed by the government and Sonangol, the state oil company, President Jose Eduardo dos Santos said at a meeting of the ruling MPLA party, according to a broadcast on state TV Friday. The central…

Venezuela Mess Prods China to Reassess Africa Lending Spree

Posted on by The Editorial Team

NIGERIA, Capital Markets in Africa: The threat of Venezuela defaulting on Chinese debt is putting pressure on Beijing to reassess how easily it doles out money to commodity-dependent nations, especially those in Africa. As low oil prices ravage Venezuela’s economy and embattled leader Nicolas Maduro seeks better terms on Chinese loans, China is paying greater attention to things like fiscal stability and political risk in overseas lending. Increasing such scrutiny could complicate President Xi Jinping’s pledge to spread $60 billion in aid across Africa over the next three years,…

Kenya’s Odinga Says He Has Evidence Eurobond Funds Went Missing

Posted on by The Editorial Team

KENYA, Capital Markets in Africa: Kenya’s main opposition party says it will produce evidence in coming weeks to support allegations that almost a third of the $2.82 billion the nation raised in its debut Eurobond sale two years ago has been misappropriated. Raila Odinga, the leader of the Coalition for Reforms and Democracy, said the East African nation’s Auditor-General doesn’t have a paper trail to account for the transfer of the funds into the country….

Mauritius Expects 46% Leap in Foreign Investment This Year

Posted on by The Editorial Team

MAURITIUS, Capital Markets in Africa: Mauritius’s government expects foreign direct investment to increase as much as 46 percent this year, even as the United Kingdom’s decision to leave the European Union may curb inflows to the Indian Ocean island nation. Foreign investors are expected to commit 14 billion rupees ($395 million) by the end of 2016, compared with 9.6 billion rupees last year, Board of Investment Chief Executive Officer Ken Poonoosamy said in a phone…

Old Mutual Split Forges Ahead Even as Brexit Risks Returns

Posted on by The Editorial Team

SOUTH AFRICA, Capital Markets in Africa: Old Mutual Plc plans to split into a South African holding company that will consist mainly of its emerging-markets businesses and another company comprising its wealth management operations, with shares traded on the London Stock Exchange. The insurer will spin off a significant portion of its stake in Nedbank to investors, leaving the South African company with a strategic holding in the lender through Old Mutual Life Assurance Co., the insurer…

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