Finance

LUSAKA (Capital Markets in Africa) — Zambia’s Eurobonds surged to their highest since March, when the government signaled it would restructure external debts, after Barclays Plc economists predicted holders might face losses much smaller than reflected in market pricing. The southern African nation’s $1 billion in notes due 2024 advanced as much as 2.2% to 58 cents on the dollar, extending their gains this month to 8.8%. Zambia became the first African defaulter of the…

NAIROBI (Capital Markets in Africa) — Kenya plans to take advantage of lower sovereign yields in the international bond markets to refinance a 10-year $2 billion Eurobond by the end of June. The measure is “part of proactive debt management to improve debt sustainability liquidity indicators,” such as the debt service-to-revenue and external debt service-to-export ratio, over the medium term, the National Treasury said in an emailed response to questions. The refinancing of the securities…

LAGOS (Capital Markets in Africa) — Nigeria increased the amount it is allowed to borrow as a proportion of gross domestic product to 40% from 25% as part of a new debt-management strategy approved by cabinet Wednesday. The higher limit will enable borrowing to fund the budget deficit and other government obligations, including promissory notes issued to settle arrears, as well as lending from the central bank, the Debt Management Office said in a statement…

ADDIS ABABA (Capital Markets in Africa) — Ethiopia plans to only approach private creditors as part of its debt-restructuring efforts if it runs out of other options. Yields on the nation’s Eurobonds plunged by the most in eight months. “The debt treatment will be carried out on a case-by-case basis and under a fair burden-sharing principle,” Brook Taye, a senior adviser at the Finance Ministry, said by text message. “This does not put private creditors…

LAGOS (Capital Markets in Africa) — The incoming chief of the World Trade Organization has a reputation for shaking up the guardians of wealth and power that will come in handy in her new role. During Ngozi Okonjo-Iweala’s effort to root out corruption during her first stint as Nigeria’s finance minister, opponents of her plans nicknamed her “Okonjo Wahala” — “Okonjo the trouble maker.” The 66-year-old development economist embraces the moniker and true to form, trouble was…