U.K. Retailer’s Struggle Sparks Warning on `Flawed’ Derivatives

U.K. Retailer’s Struggle Sparks Warning on `Flawed’ Derivatives

LONDON (Capital Markets in Africa) – The $11 trillion market for credit derivatives is coming under renewed criticism in Europe because of concerns that one of the region’s riskiest companies is heading for a debt restructuring that could expose shortcomings in default insurance. Hedge fund Sona Asset Management and JPMorgan Chase & Co. have flagged risks from a possible restructuring by U.K. retailer New Look because of flaws in the way credit-default swaps are designed to compensate for losses. The…

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It’s Hot Money, Not FDI, That’s Bringing Dollars Into Nigeria

It’s Hot Money, Not FDI, That’s Bringing Dollars Into Nigeria

LAGOS (Capital Markets in Africa) – Investors haven’t pumped this much hot money into Nigeria in three years. Portfolio investment more than tripled in the third quarter from a year earlier to $2.8 billion, according to the country’s National Bureau of Statistics. Foreign direct investment fell 65 percent year-on-year to $118 million, the lowest level since the fourth quarter of 2013. Debt traders have mostly piled into short-term securities, attracted by yields of almost 20…

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South32 May List South Africa Coal as $305 Million Boost Planned

South32 May List South Africa Coal as $305 Million Boost Planned

  JOHANNESBURG (Capital Markets in Africa) – South32 Ltd. will manage its South African energy-coal assets separately from April and spend 4.3 billion rand ($305 million) extending the life of its Klipspruit operation, as it seeks to include more black shareholders into the business before possibly listing it in Johannesburg. “South African Energy Coal requires ongoing investment to sustain production and meet its take-or-pay rail and domestic-supply obligations,” the Perth, Australia-based company said in a statement on Monday….

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Israel, Egypt Ministers Said to Discuss Potential Gas Exports

Israel, Egypt Ministers Said to Discuss Potential Gas Exports

  CAIRO (Capital Markets in Africa) – Ministers from Egypt and Israel held a call last week to discuss the potential sale of Israeli gas to Egypt, according to a person with direct knowledge of the matter. Egyptian Oil Minister Tarek El-Molla and Israel’s energy minister, Yuval Steinitz, spoke after an interview El-Molla gave to Bloomberg earlier this month sent shares of Israeli gas companies tumbling on speculation Egypt would halt talks on buying gas from Israel, the person said. El-Molla…

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Biggest African Phone-Tower Firms Are Said to Plan 2018 IPOs

Biggest African Phone-Tower Firms Are Said to Plan 2018 IPOs

LONDOND (Capital Markets in Africa) – Three of Africa’s largest telecommunication towers companies plan to pursue share sales in either London or New York early next year, taking advantage of high industry valuations to fund expansion, according to people familiar with the matter. Closely-held IHS Towers, targeting an enterprise value of $10 billion, plans to list in New York, said the people, who asked not to be identified as the information isn’t public. Helios Towers Africa LLP is…

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Glencore’s Trouble in Congo Claim Its Highest Profile Victim

Glencore’s Trouble in Congo Claim Its Highest Profile Victim

JOHANNESBURG (Capital Markets in Africa) – Two weeks after the Paradise Papers leak brought a wave of scrutiny over Glencore’s dealings in the Democratic Republic of Congo, the company is facing another scandal. The issues stem from Katanga Mining Ltd., a Congolese copper producer owned by Glencore. The African company restated financial statements and is under investigation by Canadian regulators for its corporate governance and accounting practices. In a major sign of how toxic the problem…

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China Seen Gaining Even More in Zimbabwe If Mugabe Leaves Office

China Seen Gaining Even More in Zimbabwe If Mugabe Leaves Office

HARARE (Capital Markets in Africa) – China has seen its influence rise in Zimbabwe during Robert Mugabe’s nearly four decades in power, becoming the African nation’s third-largest trading partner and biggest foreign investor. Beijing might gain even more if he goes. Former vice president Emmerson Mnangagwa, whose removal sparked last week’s military intervention, is seen as more open to investment from China and other nations than Mugabe, according to researchers who advise President Xi Jinping’s government on Africa…

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